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B Limited This company is considering undertaking a two year project. The contract will require: | Investment in new equipment at time zero will be
B Limited This company is considering undertaking a two year project. The contract will require: | Investment in new equipment at time zero will be Years equipment will be depreciated over using straight line Forecast profit for Year 1 is: Forecast profit for Year 2 is: Investment in working capital at time zero will be: Working capital will be released as end of Year: Cost of capital is: Discount factor for Year 1 is: 2 Discount factor for Year 2 is: 200,000 22 80,000 120,000 40,000 22 10% | 0.9092 0.8262 What is the NPV using the cost of capital specified? NPV:
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