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  3. 1. the concept of net present value, and how it is

1. the concept of net present value, and how it is calculated. 2. the net present...

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Finance

1. the concept of net present value, and how it is calculated.

2. the net present value rule.

3. What do you understand by the concept 'internal rate ofreturn'?

4. How is the net present value different from the internal rateof return?

5. A business proprietor sells on average $8000 worth ofgasoline on rainy days and an average of $9500 on clear days.Statistics from the local meteorological station indicates that theprobability is 0.76 for clear weather, and 0.24 for rainy weatheron Sunday. Find the expected value of gasoline sales on Monday.Explain your calculations using one slide

Answer & Explanation Solved by verified expert
3.9 Ratings (489 Votes)
1Net present value NPV Is the difference between the present value of cash inlfow reduced by initial cash outfow Calculation of NPV NPVPV of cash inflow initial outflow Present value of cash inflow is obtained by    See Answer
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