Calculate the net present value

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Reference no: EM131823501

Problem: You are considering an investment that costs $635,000 and you expect it to grow at 4% annually for 7 years before selling the investment for $900,000.

Required:

a. Calculate the net present value (NPV), rounding to the nearest dollar, and

b. Explain whether or not this investment should be made and why?

Reference no: EM131823501

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