How to determine the net present value of the investment

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Reference no: EM132574263

The projected net cash flows for an investment are:

Year 0: Year 1: Year 2 Year 3

(-850,000) 130,000 : 200,000 300,000

Question 1: The net present value of the investment, assuming 7% cost of capital is:

a. negative 801,000

b. positive 49,000

c. negative 49,000

d. positive 801,000

Reference no: EM132574263

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