Calculate the net present value of the first project


A company has a project with an expected cash inflow of $1 million at the end of year 5. They also have a second project with an expected cash inflow of $200,000, to be received at the end of each year for the next 5 years.

If both projects have the same total expected cash outflows, what can be said of the net present value of the first project compared with that of the second project?

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Accounting Basics: Calculate the net present value of the first project
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