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Purchase Decision Based on Net Present Value: Air Conditioners

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October 11th, 2022

Net Present Value is a concept which confuses many students, mostly because they are unfamiliar with its application. You would actually be surprised how many potential decisions can benefit from considering the impact of NPV. For example, should you buy a car and get $2,000 cash or a 5 year no interest loan – which is really the better deal?

Share a decision which you can now see would benefit from the use of NPV calculations and why (other than car purchasing). No research citations are required.

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