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QUESTION

) In your own words, explain each term of the NPV equation.

Week 5 DQ 2Look at the net present value (NPV) equation (11-1) in attachment, and the cash flow time line below the formula. a.) In your own words, explain each term of the NPV equation.b.) Explain how you would arrive at the discounted cash flows for each year represented within the time line. c.) How does this calculation differ from the internal rate of return (IRR) equation in (11-2)?

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