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(10 marks) A project has the following cash flows at the end of eachyear . Year 1 2 3 Cash Flow $5,000 ($5,000) $5,000 (4
- (10 marks) A project has the following cash flows at the end of eachyear.
Year | 1 | 2 | 3 |
Cash Flow | $5,000 | ($5,000) | $5,000 |
- (4 Marks) What is the future value of the cash flows at the end of year 3 at a 5% discountrate?
- (3 Marks) If the project also requires an upfront investment of $5,000 what is the PV of the cashflows?
- (3 Marks) Based on above, should this project be accepted? Why or why not?
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Principles Of Finance
Authors: Julie Dahlquist, Rainford Knight
1st Edition
979-8439388899
