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Music Company is considering investing in a new project. The project will need an initial investment of $180,000 and will generate $80,000 (after-tax) cash flows

Music Company is considering investing in a new project. The project will need an initial investment of $180,000 and will generate $80,000 (after-tax) cash flows for three years. Calculate the NPV for the project if the cost of capital is 8 percent.

Multiple Choice

  • $28,456.22

  • $60,000

  • $26,167.76

  • $339,870

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