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Net Present Value, Basic Concepts For discount factors use Exhibit 120.1. Wise Company is considering an investment that requ

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Answer #1

Present value of cash inflows = Cash inflow x Present value factor (i%, n)

= 718,500 x Present value factor (9%, 1)

= 718,500 x 0.91743

= $659,173

NPV of investment = Present value of cash inflows - Investment

= 659,173 - 600,000

= $59,173

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