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M Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 270,000 Annual cash flow $ 125,000 per
M Corporation has provided the following data concerning an investment project that it is considering:
| Initial investment | $ | 270,000 | |
| Annual cash flow | $ | 125,000 | per year |
| Expected life of the project | 4 | years | |
| Discount rate | 10 | % | |
The net present value of the project is closest to:
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$126,125 A
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$(126,125) B
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$(145,000) C
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$270,000 D
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Fundamental Financial Accounting Concepts
Authors: J.K.
7th Edition
B003NPRW7I
