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Horn Company is evaluating an investment project that has a 6-year life and produces the following cash inflows: Years 1 - 4 ............. $20,000 (each

Horn Company is evaluating an investment project that has a 6-year life and produces the following cash inflows: Years 1 - 4 ............. $20,000 (each year) Year 5 .................. $30,000 Year 6 .................. ??????? The initial investment for this project is $98,320 and the net present value of this project was calculated to be $5,057 at a cost of capital of 5%. Calculate the amount of the year 6 cash inflow associated with this investment project. Ignore the effects of income taxes. 

PERCENTAGES FROM THE MACRS TABLES

MACRS PROPERTY CLASS

Year

3-Year

5-Year

7-Year

1

33.33%

20.00%

14.29%

2

44.45%

32.00%

24.49%

3

14.81%

19.20%

17.49%

4

7.41%

11.52%

12.49%

5

-----

11.52%

8.93%

6

-----

5.76%

8.92%

7

-----

-----

8.93%

8

-----

-----

4.46%

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