Solve the net present value? of the contract

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Reference no: EM132914002

A contract is estimated to yield net annual returns of $24,000 for nine years. To secure the contract, an immediate outlay of $125,000 is required. Interest is 13% compounded annually.

Problem 1: Calculate the net present value (NPV) of the contract and determine whether the project should be accepted or rejected according to the net present value criterion.

Reference no: EM132914002

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