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For credit, you must show your calculations for this problem. Green Company is considering an investment of $1,200,000 in a 4-year project, requiring working capital
For credit, you must show your calculations for this problem.
Green Company is considering an investment of $1,200,000 in a 4-year project, requiring working capital of $150,000, which would be released at the end of the project's life. It is estimated that annual net cash inflows of $400,000 will be realized over the life of the project. Salvage value of assets is $80,000.
DC uses a discount rate of 10%.
Calculate the NPV of the project.
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