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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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