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M HW ning for Capi x C Chegg Study IGuided Sc x 700 points Troy Batkin, the chief executive officer of Batkin Carporation, has assembled

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M HW ning for Capi x C Chegg Study IGuided Sc x 700 points Troy Batkin, the chief executive officer of Batkin Carporation, has assembled his top advisers to evaluate an investment opportunity. The advisers expect the company to pay $400,000 cash at the beginning of the investment and the cash inflow for each of the following four years to be the following. Year 1 Year 2 Year 3 Year 4 $93,000 $98,000 21,000 $193,000 h his advi rs that the company should e the di nt rate (required rate of return) of 1 percent to compute net present value to evaluate the viability of the proposed project. Gev eLS1 and BVA QLS1) se appropriate factor(s) from the tables provided Required: Compute the net present value of the proposed project (Negat nt sh dicated by a minus sign. Round immediate computation of dollar amounts to the nearest whole dollars) Net present value a-2. Should Mr. Batkin a pprove the project? Yes O No uchin Onuh, one of the advisers, is wary of the cash flow forecast and she points out that the advisers failed to consider that the depreciation on equipment used in this project will be tax deductible. The depreciation is expected to be $80,000 per year for the four-year period. The 30 percent per y expected cash flow from this project. Compute the net present value of the project based on the ravised cash flow forecast Negative amount should be indicated by a minus sign. Round immediate computation of dollar amounts to the nearest whole dollars.) Net present value CD a O Type here to search 702 PM

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