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Net Present value-Unequal Uves Project 1 requires an original investment of $125,000. The project will yield cash fows of $50,000 per vear for 10 years.
Net Present value-Unequal Uves Project 1 requires an original investment of $125,000. The project will yield cash fows of $50,000 per vear for 10 years. Project 2 has a computed net present value of $135,000 over an eight-year life. Project 1 could be sold at the end of elght years for a price of $8,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. a. Determine the net present value of Project 1 over an elght-year life, with residual value, assuming a minimum rate of return of 12%. If required, round to the nearest doliae. X b. Which project provides the greatest net present value
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