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6. An investment opportunity which will cost your company $100,000 today has the following expected future cash flows: at the end of one year, $15,000,
6. An investment opportunity which will cost your company $100,000 today has the following expected future cash flows: at the end of one year, $15,000, at the end of two years, $35,000, and at the end of three years, $85,000. After year three, it will return no further cash flows and will cost nothing for the firm to scrap its assets. What is the present value of the future cash flows of this project if the appropriate cost of capital (the discount rate) is 8%? (8 points) The coc is 100,000 X 0.08 (the discount rate)= Answer=$92,000
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