How to calculate pv

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How to calculate PV.

The ship would cost $39 million, with 10% of the purchase price payable immediately and 10% due in a year's time. The balance would be due on delivery. A new ship would be depreciated on a straight-line basis over 25 years. In addition, Linn expected to make $500,000 initial investment in net working capital. 9% discount rate.

How much is the cost of a new vessel in present value terms?

Reference no: EM132641796

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