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The initial outlay of a 3-year project is $240,000. The project produces zero cash flows in...

The initial outlay of a 3-year project is $240,000. The project produces zero cash flows in the first two years and $325,000 in the third year. The discount rate used for this project is 8%. What is the estimated net present value for this project?

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Answer #1

Calculate the net present value as follows:

Therefore, the net present value is $17,995.48.

Formulas:

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