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In the table below is a set of net cash flows related to a capital investment. These already have been adjusted from NOPAT, though with
In the table below is a set of net cash flows related to a capital investment. These already have been adjusted from NOPAT, though with one exception: an estimated selling price of $206 has not yet been accounted for. (Assume the equipment is fully depreciated at end of Year 4.). If the WACC for this project is 11.6%, the initial investment is $500 (perhaps millions?), and the tax rate is 29%, what is the NPV?
YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 |
$100 | $180 | $274 | $333 |
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