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Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that
Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
r: | 10.00% | |||
Year | 0 | 1 | 2 | 3 |
Cash flows | $950 | $500 | $400 | $300 |
a. | $57.49 | |
b. | $54.62 | |
c. | $66.72 | |
d. | $60.52 | |
e. | $63.54 |
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