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Davis Chili Company is considering an investment of $18,000, which produces the following inflows: Year 1 Cash Flow $10,000 9,000 6 ,000 3 Use Appendix
Davis Chili Company is considering an investment of $18,000, which produces the following inflows: Year 1 Cash Flow $10,000 9,000 6 ,000 3 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Determine the net present value of the project based on a zero percent discount rate. Net present value b. Determine the net present value of the project based on a 10 percent discount rate. (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value c. Determine the net present value of the project based on a 19 percent discount rate. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value
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