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A new project will cost $460,000. It is expected to generate zero after-tax cash flows for the first 2 years. Cash flows for years 3-5
A new project will cost $460,000. It is expected to generate zero after-tax cash flows for the first 2 years. Cash flows for years 3-5 are expected be $90,000 per year, and cash flows for years 6-9 are expected to be $80,000 per year. Companys discount rate is 12%. Compute NPV for this investment. Should this project be accepted? Why or why not?
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