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Anderson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1, $230,000; Year 2, $345,000; Year 3, $400,000. At
Anderson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1, $230,000; Year 2, $345,000; Year 3, $400,000. At the end of Year 3, the residual value of the investment is expected to be $29,000. The company uses a discount rate of 12%, and the initial investment is $410,000. Calculate the NPV of the investment. Present value of $1: 11% 12% 13% 14% 12345 0.901 0.893 0.885 0.877 0.812 0.797 0.783 0.769 0.731 0.712 0.693 0.675 0.659 0.636 0.613 0.592 0.593 0.567 0.543 0.519 OA. $744,507 OB. $785,803 C. $452,587 OD. $375,803
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