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A capital investment project requires an investment of $100,000 and has an expected life of four years. Annual cash flows at the end of each
A capital investment project requires an investment of $100,000 and has an expected life of four years. Annual cash flows at the end of each year are expected to be as follows:
Year
Amount
1
$40,000
2
$48,000
3
$76,000
4
$56,000
Ignoring income taxes, the net present value of the project using a 8 percent discount rate is
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