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(Solved): the answer is attached to question, but can you explain the answer word by word please  Q2) Con ...



the answer is attached to question, but can you explain the answer word by word please 
Q2) Consider the following information underiying a potential investment opportunity:
The investment is expected to cost \( \
Q2) Consider the following information underiying a potential investment opportunity: The investment is expected to cost \( \$ 42,000 \). The discount rate is \( 10 \% \). a. If you are offered 530,000 todoy, would you accept this amount or \( g 0 \) for the proposed investment? Show your calculations and explain your decision. b. How would an increase in the discount rate affect your initial docision? Explain. Solution: a. Appendix Method: Formula Metho \[ \begin{array}{l} N P V=-\$ 42,000+\$ 4,545.45+\$ 8,264.46+\$ 11,269.72+\$ 73,154.30 \\ N P V=\$ 55,233.94 \\ \end{array} \]


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Explanation - Net present value is the difference between the present value of
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