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Net Present Value for a Five Year Project

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A five year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It will cost $50,000 to implement the project. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the Net Present Value.

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This solution explains how to determine the net present value with calculations and the answer for the given problem.

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NPV = Sum of PV of cash inflows - initial investment
PV is calculated as ...

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