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Finance: NPV

This set of problems is designed to be calculated using the Excel or financial calculator. Do not use financial tables to calculate these problems.

Question

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping's cost of capital is 12.20 percent. What is the NPV of a project if the initial costs are $2,209,640 and the project life is estimated as 7 years? The project will produce the same after-tax cash inflows of $494,628 per year at the end of the year.

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