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5-33. Smith Good Deeds Society is considering a 4-year investment opportunity with the following cash flows: Year Cash In Cash Out 0 0 650 1

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5-33. Smith Good Deeds Society is considering a 4-year investment opportunity with the following cash flows: Year Cash In Cash Out 0 0 650 1 140 25 N 140 25 3 3 140 25 4 340 25 If Smith uses an annual discount rate of 8 percent, should it pursue the investment? Show calculations to support your answer. (NET PRESENT VALUE) Rate = 8% Year Cash In Cash Out Net cash flow Present Value 0 0 1 2 3 4 0 0 0 0 S S S S S NPV as sum of PV's $ = NPV(rate value 1 value2, ...) $0.00 NPV by Formula Less: Year 0 Outlays NPV $

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