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Denver Corporation is investing in a new piece of equipment at a cost of $3.5 million. The project is expected to generate annual cash flows

  1. Denver Corporation is investing in a new piece of equipment at a cost of $3.5 million. The project is expected to generate annual cash flows of $625,000 over the next ten years. The firm's cost of capital is 11 percent. What is the project's NPV?

A)

$180,770

B)

$99.611

C)

$135,524

D)

$167,463

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