A project requires an initial investment of $40,000. The project is expected to produce $10,000...
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Finance
A project requires an initial investment of $40,000. The project is expected to produce $10,000 profit every year for the first four years and $8,000 profit (every year) in the following three years (i.e., years 5-7). What are the net present value (NPV) and the profitability index (PI) of this project assuming a discount rate of 7%?
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