CHAPTER 1

The present value of the 10-year stream of cash inflows is: Thus: NPV = –$800,000 + $886,739.66 = +$86,739.66. CF0 = -800,000 I = 14 CF1 = 170,000 F1= 10 Cpt NPV = 86,739.66 At the end of five years, the factory’s value will be the present value … ................
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