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3. Santana Company is considering investing in a project that will cost $151,000 and have no salvage value at the end of its 5-year life.

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3. Santana Company is considering investing in a project that will cost $151,000 and have no salvage value at the end of its 5-year life. It is estimated that the project will generate annual cash inflows of $41,000 each year. The company requires a 9% rate of return and uses the following compound interest table: Present Value of an Annuity of 1 Period 9% 10% 11% 12% 5 4.212 3.993 3.890 3.791 3.696 3.605 3.3 6% 8% 15 Instructions Compute (1) the net present value and (2) the profitability index of the project. Compute the internal rate of return on this project. Should Santana invest in this project

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