Calculate net present value.
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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100%
Transcribed Image Text:Example 7: Following are the expected cash inflows of
the company. The cost of capital is 10%. The scrap
value at the end of 4" year is 72,000:
th
Years
Cash Outflows
Cash Inflows
(E)
10,000
2,000
(3)
1
2
3,000
5,000
5,000
5,000
3
4
Calculate net present value.
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