Net returns from an investment are estimated to be $13,000 per year for 12 years. The investment involves an immediate outlay of $50,000 and a further outlay of $30,000 after 6 years. The investments are estimated to have a residual value of $10,000 after 12 years. Find the net present value at 20%.
Net returns from an investment are estimated to be $13,000 per year for 12 years. The investment involves an immediate outlay of $50,000 and a further outlay of $30,000 after 6 years. The investments are estimated to have a residual value of $10,000 after 12 years. Find the net present value at 20%.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 28P
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Transcribed Image Text:10.
Net returns from an investment are estimated to be $13,000 per year for 12 years.
The investment involves an immediate outlay of $50,000 and a further outlay of $30,000
after 6 years.
The investments are estimated to have a residual value of $10,000 after 12 years.
Find the net present value at 20%.
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