The net present value of the opportunity and whether Person MP must take this opportunity. Introduction: The difference between the cost and market value of an investment is termed as net present value. The net present value of the cash flow stream is calculated by subtracting the current value of all the costs from the current value of all the benefits. The costs are cash outflows and the benefits are cash inflows.

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Chapter 4, Problem 15P

Summary Introduction

To determine: The net present value of the opportunity and whether Person MP must take this opportunity.

Introduction:

The difference between the cost and market value of an investment is termed as net present value. The net present value of the cash flow stream is calculated by subtracting the current value of all the costs from the current value of all the benefits. The costs are cash outflows and the benefits are cash inflows.

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