Evaluate how the time value of money concept results in a discounted cash flow in year 4 (an amount less than $30,000).
Assess the investment option using a12% cost of capital discount rate by applying the NPV model. Provide the NPV at a 12% cost of capital discount rate. Include values in your assessment.
Assess the investment option when a 7% cost is capital discount rate, versus a 12% cost of capital discount rate, is applied. Provide the NPV at a 7% cost of capital discount rate. Include values in your assessment.
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