Explain what is the net present value

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1. A system development project costs add up to $427,000 by the end of year zero. Annual maintenance cost is $69,000 starting at year 1, and annual benefits (savings) are $200,000 due to task automation of system users after implementation in year 1. What is the Net Present Value of this project at the end of year 5? Annual discount rate is 6%.

Reference no: EM1354803

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