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(Ignore Income Taxes in This Problem

Question 33

Multiple Choice

(Ignore income taxes in this problem. ) Sam Weller is thinking of investing $70,000 to start a bookstore.Sam plans to withdraw $15,000 from the business at the end of each year for the next five years.At the end of the fifth year,Sam plans to sell the business for $110,000 cash.At a 12% discount rate,what is the net present value of the investment?


A) $54,075
B) $62,370
C) $46,445
D) $70,000

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