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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 \( \$ 42,000 \). 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 \[ \begin{array}{l} N P V=-\$ 42,000+\$ 4,545.45+\$ 8,264.46+\$ 11,269.72+\$ 73,154.30 \\ N P V=\$ 55,233.94 \\ \end{array} \]

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

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