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    Sep 4, 2012, 01:09 AM
    how to calculate npv ignore taxes
    A firm is considering a project that has the following estimated cashflows:
    Increased sales to business of $160,000 for the next 5 years (starting in one year's time).
    Increased costs of $20,000 for the next five years (starting in one year's time).
    The initial capital expenditure required is $100,000, and salvage value at the end of 5 years is expected to be $30,000.
    Cost of the feasibility study is $10,000.
    If the firm is facing a discount rate of 11%, what is the NPV of this project?
    Ignore taxes.

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