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Anderson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1, $250,000; Year 2, $350,000; Year 3, $395,000. At the
Anderson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1, $250,000; Year 2, $350,000; Year 3, $395,000. At the end of Year 3, the residual value of the investment would be $50,000. The company uses a discount rate of 12%, and the initial investment is $400,000 What is the present value of the cash net cash inflows? Calculate the NPV of the investment? What is the IRR of the project
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