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17 Tegan Corporation needs a 15% annual return on all investments and evaluates potential projects using the net present value method. Tegan is evaluating two
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Tegan Corporation needs a 15% annual return on all investments and evaluates potential projects using the net present value method. Tegan is evaluating two different projects. Each require an initial investment of $15,600 and will yield the following cash flows: The present value factors of $1 each year at 15% are: The present value of an annuity of $1 for 3 years at 15% is 2.2832 . The net present value(rounded to the nearest whole dollar) of Project Alpha is: A. $(15,600) B. $16,964. C. $10,200. D. $(19,636). E. $4,036 Step by Step Solution
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