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GNRD Inc. has the opportunity to market a product for 5 years under a specialty contract. The product will provide the company with net cash
GNRD Inc. has the opportunity to market a product for 5 years under a specialty contract. The product will provide the company with net cash flows of $40,000. The investment calls for an initial working capital investment $280,000. The investment also calls for the purchase of equipment for $200,000. The machinery will have a salvage value of $60,000 at the end of the contract. GNRD Inc. is subject to a 16% discount rate. The net present value of this investment opportunity is: O A $25,160 OB. -$187,200 O C. $14,170 OD. $74,720
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