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Altman Hydraulic Corporation will invest $186,000 in a project that will produce the cash flow shown below. The cost of capital is 10 percent. (Note
Altman Hydraulic Corporation will invest $186,000 in a project that will produce the cash flow shown below. The cost of capital is 10 percent. (Note that the third year's cash flow is negative.) |
Use Appendix B. |
Year | Cash flow | |||
1 | $ | 47,000 | ||
2 | 53,000 | |||
3 | (51,000) | |||
4 | 48,000 | |||
5 | 145,000 | |||
|
(a) | What is the net present value of the project? (Round "PV Factor" to 3 decimal places. Round intermediate and final answer to the nearest dollar amount. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) |
Net present value | $ |
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