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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 | $ | 55,000 | |
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 9%, the expected net cash inflow for year 3 is closest to:
Multiple Choice
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47170
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55270
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50530
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43370
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