You are considering investing in a business that will cost $200,000 and will create free...

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Accounting

You are considering investing in a business that will cost $200,000 and will create free cash flows at the rate of $30,000 per year for the next 10 years.

Assume that interest rates might vary between 0 and 10%.

Create a table in which one column is interest rates of 0, 1, 2, 3 ... , 9, 10% and the other column is the NPV of the above noted project given the interest rate.

What is the NPV when the interest rate is 1%?

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