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If a company has a 16% discount rate, how do you use this for coming up with the net present value of a product with an initial investment of 170000?...

If a company has a 16% discount rate, how do you use this for coming up with the net present value of a product with an initial investment of 170000?


initial investment $170,000

the sales revenue is $250,000

variable expenses is $120,000

depreciation expense $34,000

fixed out-of-pocket expense $70,000


What is the net present value of this product?

Top Answer

Answer Net Present Value = -Initial Investment + PV of Annual Cash... View the full answer

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