If a company has a 16 discount rate how do you use this for


Question - If a company has a 16% discount rate, how do you use this for coming up with the net present value of a product with an initial investment of 170000?

Initial investment $170,000

The sales revenue is $250,000

Variable expenses is $120,000

Depreciation expense $34,000

Fixed out-of-pocket expense $70,000

What is the net present value of this product?

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Accounting Basics: If a company has a 16 discount rate how do you use this for
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