What is npv of the project for john

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Question 1: John wants to open a new restaurant. He estimates that the initial investment will be one million. The restaurant is expected to produce $80,000 of operating cash flow every year for 30 years. After 30 years, John can sell fixed assets for $100,000. What is NPV of this project? Assume the johns discount rate is 5% per year and compounded annually.

Reference no: EM132609283

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