Calculate net present value using thirteen percent

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Your grandmother gave you a nice amount for your 18th birthday. You don't need the money for urgent matters. So you decide to invest the money in small activity. You buy 18 electric steps at a purchase price of 574 EUR for 1 step and you rent them out for 2 years (so you amortize them on 2 years). At the end of the 2 years you will sell the whole lot of steps for an amount of 3000 EUR (this is the residual value for all steps together). You will rent out the steps for a price of 506 EUR for 1 step for 1 year.

Problem 1: Calculate the Net Present Value, using 13% as discount rate for your investment

Reference no: EM132972208

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