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20. Dolphin Inc. recently invested in a project with a 3-year life span. The net present value was $9,000 and annual cash flows were
20. Dolphin Inc. recently invested in a project with a 3-year life span. The net present value was $9,000 and annual cash flows were $21,000 for year 1; $24,000 for year 2; and $27,000 for year 3. The initial investment for the project, assuming a 15% required rate of return, was Present Value Year of 1 at 15% 1 2 .870 .756 3 .658 a. $45,792. $45,180. c. $29,232. d. $38,376. PV of an Annuity of 1 at 15% .870 1.626 2.283
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