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A company is considering a project that will require an immediate outlay of $33 000 and $33 000 outlays for the next two years. At
A company is considering a project that will require an immediate outlay of $33 000 and $33 000 outlays for the next two years. At the end of the project, the company expects to salvage the physical assets for $58 000. The project is estimated to yield net returns of $58 000 in Year 4, $36 000 in Year 7, and $25 000 for each of the following 5 years. The required rate of return is 10.1%.
What is the value for CFo?
a.
CFo = - $58 000
b.
CFo = - $33 000
c.
CFo = - $58 000
d.
CFo = - $83 000
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