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Cameron Tucker Inc. is considering two average-risk alternative ways of producing its patented polo shirts. Process S has a cost of $8,000 and will produce

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Cameron Tucker Inc. is considering two average-risk alternative ways of producing its patented polo shirts. Process S has a cost of $8,000 and will produce net cash flows of S5,00 per year for 2 years. Process L will cost $11,500 and vear for 4 years. The company has a contract that requires it to produce the shirts tor but the patent will expire after 4 years, so the shirts will not be produced after 4 years. Inflation is expected to be zero during the next 4 years. If cash inflows occur at the each year, and if Cameron Tucker's cost of capital is 10 percent what wou project S using a replacement chain to make it a 4-year project? 0 will produce cash flows of $4,000 per 4 years, end of d be the NPV of A. S677.69 B. $1,098.89 C. $1,179.46 D. $1,237.76 E. $1,312.31

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