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Neutrofina is evaluating a new laser technology that requires an initial investment of $320,000 and will generate after-tax cash inflows of $60,000 per year for
Neutrofina is evaluating a new laser technology that requires an initial investment of $320,000 and will generate after-tax cash inflows of $60,000 per year for 10 years. Calculate the net present value (NPV) if the firms cost of capital is 12% and indicate whether or not the firm should accept the project. Does your decision change if the cost of capital suddenly increases to 14%?
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