What is the net present value of this payment

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Reference no: EM131195963

An aircraft company has signed a contract to sell a plane for $20 million. The firm buying the plane will pay for it in five annual payments (at year end) of $4 million. If the firm's cost of capital is six percent, what is the net present value of this payment?

Your response should be at least 200 words in length.

Reference no: EM131195963

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