Question
Davis Chili Company is considering an investment of $60,000, which produces the following inflows: Year Cash Flow 1 $ 27,000 2 26,000 3 23,000 Use
Davis Chili Company is considering an investment of $60,000, which produces the following inflows: Year Cash Flow 1 $ 27,000 2 26,000 3 23,000 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 25 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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