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Net Present Value A project has estimated annual net cash flows of $13,750 for seven years and is estimated to cost $40,000. Assume a minimum
Net Present Value A project has estimated annual net cash flows of $13,750 for seven years and is estimated to cost $40,000. Assume a minimum acceptable rate of return of 10%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111
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