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A project requires an initial investment of $2,000,000, and produces an annual inflow of $400,000 at the end of years 1.7. an
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

W24 A B Initial investment $2,000,000 Annual Cash inflow [year 1-8] Single Cash inflow at Year-8 Discount rate $400,000 $200,

Cell reference -

ДА В Initial investment 2000000 Annual Cash inflow [year 1-8] Single Cash inflow at Year-8 Discount rate 400000 =600000-40000

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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