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Calculate the net present value for the five year project

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Reference no: EM132761592

Problem 1: Calculate the net present value (NPV) for the following 5-year projects. Comment on the acceptability of each. Assume the firm has a cost of capital of 9%.

  1. Initial investment is $1,000,000; cash inflows are $150,000 per year
  2. Initial investment is $2,500,000; cash inflows are $320,000 per year
  3. Initial investment is $3,000,000; cash inflows are $365,000 per year

Reference no: EM132761592

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