Summary: This paper explains the NPV of a system. The NPV is the value of the system at present after discounting their present value so that they can be compared with the cash outlay of the company. The difference between the present value of the cash inflows and the present value of cash outflows gives the systems NPV. When a project has a positive NPV, then the project should be accepted. The system in this case indicates that it is acceptable in terms of the cost of capital of 10%.
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