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    Present value of cash outflows related to this investment

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    The company is deciding whether to invest in a certain capital investment. The investment requires an initial outlay of $55,000 and annual payments of $12,000 made at the end of the year for five years. The company's discount rate is 14%. What is the present value of cash outflows related to this investment?

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    https://brainmass.com/business/accounting/present-value-cash-outflows-related-investment-192185

    Solution Preview

    = Initial outlay+Present value of annual payments
    =55000 + Present value of annual payments of $12,000 made ...

    Solution Summary

    This explains the present value of cash outflows related to this investment.

    $2.19

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