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Unformatted text preview: Present value of an annuity of $1 at 12% for 4 years x Present value of annual cash flows Less amount to be invested Net present value 2. Net present value analysis: Net Cash Flow Present Value of Net Cash Flow Year Project I Project II Project I Project II 1 2 3 4 Residual value Total Amount to be invested Net present value 3. To: Investment Committee Present Value of $1 at 12%...
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- Spring '10
- Net Present Value