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23 Whispering Winds Corporation is reviewing an investment proposal. The schedule below presents the initial cost and estimates of the book value of the investment

23
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Whispering Winds Corporation is reviewing an investment proposal. The schedule below presents the initial cost and estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income for each year All cash flows are assumed to take place at the end of the year. The investment's salvage value at the end of each year is equal to its book valus, There would be no salvage value at the end of the investment's life Investment Proposal Year Annual Net Income Initial Cost and Book Value Annual Cash Flows 0 $104.900 $14,200 $49,300 69,700 1 45.000 17.800 42 300 2 40.600 19.500 3 20.700 35,600 20,400 7.700 23.200 0 0 29.200 Whispering Winds Corporation uses a 15% target rate of return for new investment proposals. (c) What is the net present value of the investment there we have preceding the es -45 or parentheses (45) For calculation purposes se 5 decimalla al displayed in the factor tobe provided 1.251 and final answer to decimal places e 5.275) Click here to view the factor table. Net present value 5

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