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    Net present value of a project

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    What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assuming the cost of capital is 15 percent. (Present value (PV) of inflows less Net Investment (NINV)

    The four answers to choose from are the following:
    a. $91,520
    b. $15,520
    c. $78,000
    d. $167,474

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    Solution Preview

    Answer: b. $15,520

    n= 7 years
    r= 15% =Discount rate
    PVIFA (7 ...

    Solution Summary

    The solution calculates net present value of a project.