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Admiral Inc. is considering an investment in a project that has an internal rate of return of 12%. The project has a 5-year useful life
Admiral Inc. is considering an investment in a project that has an internal rate of return of 12%. The project has a 5-year useful life but has no salvage value. Cash inflows from this project are $20,000 per year in each of the 5 years. Admiral uses a 14% discount rate to make capital budgeting decisions.
What is the net present value of this project?
O $(11,340)
O $(3,440)
O $6,880
O $7,900
O None of the above
Admiral Inc. is considering an investment in a project that has an internal rate of return of 12%. The project has a 5-year useful life but has no salvage value. Cash inflows from this project are $20,000 per year in each of the 5 years. Admiral uses a 14% discount rate to make capital budgeting decisions.
What is the net present value of this project?
O $(11,340)
O $(3,440)
O $6,880
O $7,900
O None of the above
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