Question

Asked Jul 18, 2019

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A project will produce cash inflows of $3,200 a year for 4 years with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,500. What is the net present value of this project if the required rate of return is 16 percent?

Step 1

**Calculation of NPV:**

** ****Excel spread sheet:**

Step 2

**Excel workings:**

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