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Management of TSC, Inc. is evaluating a new $97,000 investment with the following estimated cash flows: Year Cash Flow 1 $ 15,000 2 22,000 3
Management of TSC, Inc. is evaluating a new $97,000 investment with the following estimated cash flows:
Year | Cash Flow | ||
1 | $ | 15,000 | |
2 | 22,000 | ||
3 | 38,000 | ||
4 | 54,000 |
The firms cost of capital is 10 percent and the project will require that the firm spend $14,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.
The NPV of the investment is $ .
Should the firm make the investment?
The firm -Select-shouldshould notItem 2 make the investment.
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