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Ms. Ansley Johnson, an ambitious young financial analyst working for Bryant & Chen Financial Solutions, Ltd., is attempting to reconstruct a project analysis of
Ms. Ansley Johnson, an ambitious young financial analyst working for Bryant & Chen Financial Solutions, Ltd., is attempting to reconstruct a project analysis of a co-worker who was fired for flunking FI 3300. She has found the following information: The IRR is 12%. The project life is 5 years. The initial cost is $10,000. In years 1 and 2 you will receive cash inflows of $3,000. You know the cash flows in years 3, 4, and 5 are equivalent, but the amount is not on file. The appropriate discount rate is 10%. What is the NPV of the project? [Hint: Find the missing cash flows and then compute the NPV.] a. $4,000.00 b. $498.27 c. -$498.27 d. -$ 4,000.00 e. None of the above 2018
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