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54) Glovin Associates has been offered a four-year contract to supply the computing requirements for a local bank. Cash flow information Cost of computer equipment.
54) Glovin Associates has been offered a four-year contract to supply the computing requirements for a local bank. Cash flow information Cost of computer equipment. Working capital equired.$20,000 Salvage value of equipment in 4 years... $10,000 The working capital would be released at the end of the contract. Gloven Associates requires a 14% return. What is the net present value of the contract with the local bank? A) $16,390 B) $28,230 C) $92,340 D) $132,916 55) If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal. A) True B) False
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