Explain the usefulness of the net present value

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Explain the usefulness of the net present value concept in decision making vis-àvis the MR = MC rule. For money received in n periods, the discount factor is PVIFn = l/(l+i)n . What will be the present value of $500 to be received 10 years from today if the discount rate is 6%?  Appreciate the explanation in step by step manner the usefulness of the result.

Reference no: EM132502826

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