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npv

Ahmed has the opportunity to invest in Project X and Project Y. The both projects need initial investments of RM50,000 and RM80,000 respectively. The yearly cash flow for project Y is RM20,000, RM40,000 and RM60,000. Project X is expected to get a steady income of RM 20,000 annually throughout the next three years. Based on the information given, calculate the net present value (NPV) for each project if the required rate of return is fifty percent.

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