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Calculate the npv of investment opportunity

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You are trying to value the following investment opportunity: The investment will cost you $9,830 today. In exchange for your investment you will receive cash payments in perpetuity. The first payment will occur after one year and will be $287. Afterwards, cash payments will grow by 1.6% annually. The applicable interest rate for this investment opportunity is 5% (effective annual rate). Calculate the NPV of this investment opportunity. Round to two decimals (do not include the $-sign in your answer).

Reference no: EM132651247

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