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Assumethefollowingforaprojectunderevaluation: Theproject'slifeis4years. Thetotaltimezero,initialcostof$55,000. Thetotalnetoperatingcashfloweachyearis$15,000. Inadditiontotheterminalyearoperatingcashflow, thereisanonoperating,terminalyearcashflowof $8,000. Ifthecostofcapitalforaprojectofthisriskis7%,what istheproject'sNPV?Acceptorrejecttheproject? 123,000accept 13,000accept 56,911reject 1,911accept 13,355accept

Assumethefollowingforaprojectunderevaluation: Theproject'slifeis4years. Thetotaltimezero,initialcostof$55,000. Thetotalnetoperatingcashfloweachyearis$15,000. Inadditiontotheterminalyearoperatingcashflow, thereisanonoperating,terminalyearcashflowof $8,000. Ifthecostofcapitalforaprojectofthisriskis7%,what istheproject'sNPV?Acceptorrejecttheproject?

123,000accept

13,000accept

56,911reject

1,911accept

13,355accept

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