An overhaul of a firm's outdated production facilities is expected to cost £100,000. The improvement to the firm's net cash flow over the next five years is expected to be as follows:
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Year 1
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£40,000
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|
Year 2
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£35,000
|
|
Year 3
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£30,000
|
|
Year 4
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£20,000
|
|
Year 5
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£1 0,000.
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Calculate the net present value using the discount rates of 10, 12 and 14 per cent.