Compute the firm NPV, A firm plans to operate for the next

Compute the firm NPV

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Reference no: EM132823599

Question - A firm plans to operate for the next 8 years, and then it will close down. Under advertising strategy A, the profit that will be earned now, and then projected at the end of each of the next 8 years is given below.

0 $480,000.00

1 $600,000.00

2 $550,000.00

3 $500,000.00

4 $479,777.00

5 $560,000.00

6 $586,000.00

7 $550,000.00

8 $550,000.00

The interest rate (discounting rate) is 3%. Compute the firm's NPV (net present value).

Reference no: EM132823599

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