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Assume that a company is planning to invest $150,000 in a project that will last three years. The project will produce the following net cash

Assume that a company is planning to invest $150,000 in a project that will last three years. The project will produce the following net cash inflows:

Year 1 $ 65,000
Year 2 $ 75,000
Year 3 $ ?

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming the projects internal rate of return is exactly 18%, the expected net cash inflow for year 3 is closest to:

Multiple Choice

  • $67,479

  • $63,679

  • $75,579

  • $70,839

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