What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost of capital is 14%?
Question
Solution 1
Sure, here's how you can calculate the Net Present Value (NPV) of the project:
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Identify the cash flows: The initial cost of the project is 50,000 annually for 3 years (these are inflows so they will be positive).
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