Pena Co. is considering an investment of $27,000 that provides net cash flows of $9,000 annually for
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Pena Co. is considering an investment of $27,000 that provides net cash flows of $9,000 annually for four years.
(a) If Pena Co. requires a 10% return on its investments, what is the net present value of this investment?
(b) Based on net present value, should Pena Co. make this investment?
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