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Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 400,000 Annual cash flow $ 130,000 per
Moates Corporation has provided the following data concerning an investment project that it is considering:
| Initial investment | $ | 400,000 | |
| Annual cash flow | $ | 130,000 | per year |
| Expected life of the project | 4 | years | |
| Discount rate | 9 | % | |
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
The net present value of the project is closest to:
Multiple Choice
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$(21,070)
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$400,000
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$(270,000)
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