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A company has to make a decision about expanding its production facilities. Research indicates that the desired expansion would require an immediate outlay of $110,000
A company has to make a decision about expanding its production facilities. Research indicates that the desired expansion would require an immediate outlay of $110,000 and an outlay of a further $20,000 in 5 years. The net cash returns are shown below. Find the net present value of the project. According to the net present value criterion, should the expansion project be undertaken if the required rate of return is 14%? Year 1 to Year 8 Year 9 to Year 14 $21,000 per year $19,000 per year The net present value of the expansion project is $0. (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) The project should be rejected
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