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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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Solution Summary

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

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

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