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Question: Calculate the net present value (NPV) for the following twenty-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14%.

a. Initial cash outlay is $15,000; cash inflows are $13,000 per year.

b. Initial cash outlay is $32,000; cash inflows are $4,000 per year.

c. Initial cash outlay is $50,000; cash inflows are $8,500 per year.

Note: Explain in detail and show all computations in proper way.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91174743

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