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Calculate the net present value of the contract

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Question - A contract is estimated to yield net annual returns of $10,400 for seven years. To secure the contract, an immediate outlay of $50,000 is required. Interest is 11% compounded annually. 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: EM133173595

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