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Question 19.TQ.7: The following net cash flows relate to Lockhart Limited in c...

The following net cash flows relate to Lockhart Limited in connection with a certain project that has an initial cost of £2,500,000:

Year Net cash flow
£
1 800 (excluding the initial cost)
2 850
3 830
4 1200
5 700

The company’s required rate of return is 15 per cent.

Required:
Calculate the net present value of the project.

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