Solved: If the appropriate discount rate is 171 percent per annum, Basic Statistics

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If the appropriate discount rate is 171 percent per annum

A company is considering an investment that will cost $972,000 and have a useful life of 5 years. The cash flows from the project are expected to be $573,000 per year in the first two years then $125,000 per year for the last 3 years. If the appropriate discount rate is 17.1 percent per annum, what is the NPV of this investment (to the nearest dollar)?

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Basic Statistics: If the appropriate discount rate is 171 percent per annum

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Basic Statistics: If the appropriate discount rate is 171 percent per annum

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