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A project costs $500,000 and produces the following 2-year cash flow.: Year Cash Flow 1 -$50,000 2 $620,000 If the firm has a cost of
A project costs $500,000 and produces the following 2-year cash flow.:
Year Cash Flow
1 -$50,000
2 $620,000
If the firm has a cost of funding = 7%, what is the NPV of the project? (note that both cash flows and rates are quoted on an annual basis)
$8,6227.36 | ||
-$3,355.83 | ||
-$3,881.72 | ||
$-5,196.96 |
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