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What is net present value of the products

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Reference no: EM132519354

Question 1: Products will expect to invest $400000 for the development of their new product. The company estimates that the first year cash flow will be $100000, the second year cash flow will be $200000, and the third year cash flow to be $100000. The expected return of 5% is used as the discount rate. What is net present value (NPV)?

Reference no: EM132519354

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