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Consider the case of Darling Inc.: Darling Inc. is evaluating a proposed capital budgeting project that will require an initial investment of $152,000. The project
Consider the case of Darling Inc.: Darling Inc. is evaluating a proposed capital budgeting project that will require an initial investment of $152,000. The project is expected to generate the following net cash flows: Year Year 1 Cash Flow $42,400 $51,300 $47,400 Year 2 Year 3 Year 4 $45,900 Assume the desired rate of return on a project of this type is 11%. What is the net present value of this project? (Note: Do not round intermediate calculations.) - $7,271.35 O -$23,773.90 -$4,415.10 $15,498.90 Suppose Darling Inc. has enough capital to fund the project, and the project is not competing for funding with other projects. Should Darling Inc. accept or reject this project? Reject the project Accept the project
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