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Always Building Co. has a project under consideration with the following estimated cash flows: An initial investment of $500,000. A return of $200,000 in year
Always Building Co. has a project under consideration with the following estimated cash flows: An initial investment of $500,000. A return of $200,000 in year two and then continuing yearly ten additional years. Additionally, they must forego an existing business that returns $25,000 annually. The firms cost of capital is 12%.
Calculate the NPV of this project.
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