Тестовый вопрос

Salem Co is considering a six-year project that produces annual net cash inows of $420,000 for the rst ve years and a net cash inow of $100,000 at the end of the sixth year. The project will require an initial investment of $1,800,000. Salem's cost of capital is 10%. What is the net present value for this project? Choose the closest number.

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Ответ

Let's calculate NPV according to the standard formula:

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