Computation of net present value of investment

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Reference no: EM1314252

You have been offered the following investment: You will put up $60,000 now and additional $40,000 at the end of years two, three and four. Beginning at the end of year 5, you will receive $40,000 at the end of the each of the following 8 years (end of year 5 is the first payment). The prevailing interest rate is 6%. What is the net present value of this investment?

Reference no: EM1314252

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