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Here are the details for Kat Cos proposed project. Calculate its NPV. Assume that the cost of capital is 15 percent and that the after
Here are the details for Kat Cos proposed project. Calculate its NPV. Assume that the cost of capital is 15 percent and that the after tax cost of starting the project is $5,000,000. It will provide after-tax operating cash inflows as shown below. (Carefully consider whether or not they are losing money on this project.) Year 1: $1,800,000 Year 2: $1,900,000 Year 3: $1,700,000 Year 4: $1,300,000
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