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An organisation is considering a capital investment in new equipment. The estimated cash flows are as follows: Year Cash flow Le 0 (2,400,000) 1 800,000
An organisation is considering a capital investment in new equipment. The estimated cash flows are as follows:
Year Cash flow
Le
0 (2,400,000)
1 800,000
2 1,200,000
3 700,000
4 400,000
5 200,000
The company's cost of capital is 9%.
Calculate the Net Present Value (NPV) of the project to assess whether it should be undertaken
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