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ABC Company is considering a project with an initial cost of $5000 and net cash flow of $2000 for next three years. The expected abandonment
ABC Company is considering a project with an initial cost of $5000 and net cash flow of $2000 for next three years. The expected abandonment cash flows for years 0,1,2 and 3 are $5000, $3000, $2500, and $0. The firm's cost of capital is 10%. We will compute NPVs in three cases.
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