Calculate the NPV of Poseidon Shipping

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Question - Percy's second potential business venture, Poseidon Shipping, will cost three annual payments of $200,000 starting today (at t = 0, 1, and 2).

The first positive cash flow of $150,000 is expected to be paid three years from now (t=3). This cash flow will continue to be paid annually forever.

Percy knows that his company's required rate of return for such projects is 10% per annum effective.

Calculate the NPV of Poseidon Shipping.

Reference no: EM132984958

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