c.$26,053.
present value of cash outflows = $82,000+$380,000 =>$462,000.
present value of cash inflows:
profit / (1+r)^n
r=7%=>0.07
n = number of the year.
=>present value of cash inflows:
=>($173,000/ (1.07)^1) + ($173,000 / (1.07)^2) + ($111,000 / (1.07)^3) + ($111,000 / (1.07)^4)
=>161,682.243+151,104.9+90,609.0646+84,681.3688
=>$488,077.576.
net present value = $488077.576-462,000
=>$26,077.
close to $26,053......(minute difference arises due to rounding off of factors).
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