Calculate the net present value of the two opportunities

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Question - Matthew Young is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Matthew uses a 12% discount rate.

Option 1 Option 2

Equipment purchase and installation $70,200 $82,000

Annual cash flow 27,300 29,700

Equipment overhaul in year 6 4,700

Equipment overhaul in year 8 6.050

Required - Calculate the net present value of the two opportunities.

Reference no: EM133013756

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