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1.Allstar Company invests in a project with expected cash inflows of $9,000 per year for four years. All cash flows occur at year-end. The required
1.Allstar Company invests in a project with expected cash inflows of $9,000 per year for four years. All cash flows occur at year-end. The required return on investment is 9%. If the project generates a net present value (NPV) of $3,000, what is the amount of the initial investment in the project?
2.A company has a current ratio of 2.0. Cash is 20%, accounts receivable is 40%, and inventory is 40% of total current assets. What is the acid-test ratio for the company?
3.Calculate the NPV of the project, assuming a 10% discount rate.
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