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A company must decide if a proposed project is financially justifiable. To help make this decision, the company just spent $8 million dollars. If the
A company must decide if a proposed project is financially justifiable. To help make this decision, the company just spent $8 million dollars. If the company goes ahead with this project, it must immediately spend another $150 million now, and then spend $30 million in one year. In two years, it will receive $90 million, and in three years it will receive $110 million. If the cost of capital for the project is 11%:
The project's NPV is:
A) -$32,082
B) -$23,550
C) $10,085
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