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How do determine what is the net present value of a project

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Problem 1: What is the net present value of a project that requires a net investment of $76,000 and produce net cash flows of $22,000 per year for seven years? Assume the cost of capital is 15% and net terminal cash flow of negative $16,000?

1. $9,514
2. zero.
3. $7,560
4. $11,800
5. $6,540

Reference no: EM132645323

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