Homework Answers
The net present value is computed as shown below:
= - $ 675,000 + $ 195,000 / 1.141 + $ 195,000 / 1.142 + $ 195,000 / 1.143 + $ 195,000 / 1.144 + $ 195,000 / 1.145 + $ 195,000 / 1.146
= $ 83,290 Approximately
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