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(Ignore income taxes in this problem.) ABC Co. is considering an investment opportunity having cash flows as described below: Project II would require cash outlays
(Ignore income taxes in this problem.) ABC Co. is considering an investment opportunity having cash flows as described below: Project II would require cash outlays of $3,000 per year and would provide a cash inflow of $30,000 at the end of 8 years. Required: If ABC Co. has a required rate of return of 14%, determine if the project is acceptable. Use the NPV method. A. Not acceptable, because NPV is $3,387) B. Yes acceptable, because NPV is $3,387 C. It doesn't matter because NPV is $0 D. Yes acceptable, because NPV is $10,530
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