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What is the net present value

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Question - Case Study C is a three year project which has an initial cost of $6,000,000 with depreciation of $2,000,000 p.a. and a scrap value at the end of the project of nil. The average cost of capital is 9% p.a.

The net profit after tax for the project for each of the three years is expected to be:

Year 1: $2,000,000

Year 2: $3,000,000

Year 3: $4,000,000

Required - What is the Net Present Value?

Reference no: EM133019923

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