Question

Suppose that an investment opportunity has a cost today of $100,000. You will receive a payment...

Suppose that an investment opportunity has a cost today of $100,000. You will receive a payment of $30,000 one year from today. You will receive a payment of $60,000 two years from today. You will receive a payment of $50,000 three years from today. Finally, you will have to pay $10,000 to dispose of the asset four years from today. What is the net present value of the costs and benefits if the interest rate is 10%?

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