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What is the net present value of this investment? INITIAL COST                                

What is the net present value of this investment?

INITIAL COST                                 $500,000

PROJECT LIFE                                 15 years

SALVAGE VALUE                           $ 20,000

ANNUAL NET CASH FLOWS          $120,000   

DISCOUNT RATE                                15 %

            a.     $ 203,684

            b.    $ 204,142

            c.     $ 205,669

            d.    $ 206,263

            e.     $ 208,721

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