Income taxes may be ignored for this problem. 
Homework Answers
NPV = Present value of cash flows - Initial Investment
$49,800 = $124,000 * PVAF (12% , 9 years) - Initial Investment
Initial Investment = $124,000 * 5.32825 - $49,800
Initial Investment = $660,703 - $49,800
Initial Investment = $610,903
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Income taxes may be ignored for this problem.
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Ignore income taxes
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