Problem on net present value


The Ogden Corporation makes an investment of $25,000, which yields the following cash flows:

Year1 Cash Flow=5,000

Year2 Cash Flow=5,000

Year3 Cash Flow=8,000

Year4 Cash Flow=9,000

Year5 Cash Flow=10,000

What is the net present value with a 9 percent discount rate (cost of capital)?

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Finance Basics: Problem on net present value
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