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What is the present value

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It will cost me $100,000 up front to develop the product, and it will cost $25,000 per year to manufacture it. My revenues will be $65,000 per year, for an additional profit of $40,000 per year. The product will be good for three years, at which time I will discontinue the business.If my discount rate is 12%, what is the present value, and should I go forward with the project?

Reference no: EM131650669

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