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NPV Project L costs $60,000 it’s expected cash inflows are $13,000 per year for 10 years,...

NPV
Project L costs $60,000 it’s expected cash inflows are $13,000 per year for 10 years, and its WACC is 10%. what is the NPV? Round answer to nearwst cent. Do not round intermediate calculations.
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Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=13000[1-(1.1)^-10]/0.1

=13000*6.144567106

=$79879.37

NPV=Present value of inflows-Present value of outflows

=$79879.37-$60,000

=$19879.37(Approx).

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