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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%?

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Solution 1

Sure, here's how you can calculate the Net Present Value (NPV) of the project:

  1. Identify the cash flows: The initial cost of the project is 100,000(thisisanoutflowsoitwillbenegative).Theprojectthenreturns100,000 (this is an outflow so it will be negative). The project then returns 50,000 annually for 3 years (these are inflows so they will be positive).

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Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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