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    NPV

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    The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years. What is the net present value?

    Textbook info: Operations Management, 8th Edition
    Authors: Jay Heizer and Barry Render
    Prentice-Hall

    © BrainMass Inc. brainmass.com June 3, 2020, 9:38 pm ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/192701

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    Please see attached file
    The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years. What is the net present value?

    Since the cash flows are the same over the years (annuity) ...

    Solution Summary

    The solution calculates NPV, given investment, cost of capital, cash inflows and rate of return.

    $2.19

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