Net present value of an investment project


Question: What is the Net Present Value (NPV) of an investment project with an initial cost of $6 million and positive cash flows of $1.6 million at the end of the year 1, $2.4 million at the end of year 2, and $2.8 million at the end of year 3. Use 10% as the discount rate.

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Finance Basics: Net present value of an investment project
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