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Darling Corp. is evaluating a proposed capital budgeting project that will require an initial investment of $ 1 5 2 , 0 0 0 .

Darling Corp. 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
Cash Flow
1 $42,400
2 $51,300
3 $47,400
4 $45,900
Assume the desired rate of return on a project of this type is 9%. The net present value of this project is
Suppose Darling Corp. has enough capital to fund the project, and the project is not competing for funding with other projects. Should Darling Corp. accept or reject this project?
Accept the project
Reject the project

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