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What Is the Net Present Value for a $55,000 Investment

Question 28

Multiple Choice

What is the net present value for a $55,000 investment (−$55,000 in year zero) and cash inflows of $20,000 per year for years 1 through 4, using a 4% discount rate?


A) $16,921.06
B) $25,000
C) −$25,000
D) −$16,921.06

Correct Answer:

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