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A firm is evaluating an investment proposal which has an initial investment of $5,000 and promises $2,000 per year in after-tax cash inflows for 4
A firm is evaluating an investment proposal which has an initial investment of $5,000 and promises $2,000 per year in after-tax cash inflows for 4 years thereafter. If the annual cost of capital is 5%, the net present value of this investment is _________.
a) $1,774.42
b) $3,000
c) $11,774.42
d) $2,091.90
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