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Net present Value

A project costing $35 - million is expected to generate profits of $11 - million in the first year, $14 - million in the second year, $16 - million in the third year, and 12 - million in the fourth year. What is the NPV if the hurdle rate is 8%?

Solution Preview

Use the formula:
PV = Cash flow / (1+8%)^n
where n is the number of ...

Solution Summary

Net present Value is determined.

$2.19