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22) Refer to the Capital Budgeting Narrative . Assume that the firm has a threshold of 3.4 years, then based on the PB method Capital
22) Refer to the Capital Budgeting Narrative. Assume that the firm has a threshold of 3.4 years, then based on the PB method Capital Budgeting Narrative (Use the following information for questions referring to the narrative.: Izmir Estate is considering a new project. The initial investment required is $87,144.41 and the cost of capital is 9%. Expected cash flows over the next four years are given below:
Years | Cash Flow ($) |
1 | 14,000 |
2 | 38,000 |
3 | 28,000 |
4 | 60,000 |
The project will NOT be accepted |
The project will be accepted |
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