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Present Value of $ 1 at 12% for 8 years = 0.404 Present Value of an annuity at 12% for 8 years = 4.968 Future
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Present Value of $ 1 at 12% for 8 years = 0.404
Present Value of an annuity at 12% for 8 years = 4.968
Future Value of $1 at 12% for 8 years = 2.476
Future Value of an annuity at 12% for 8 years = 12.3
Vargas Products is considering a capital project. Project A has net cash inflows of $56,000 annually for 8 years. What is the total amount they would be willing to invest if their expected return is 12%?
a. $ 22,624
b. 180,992
c. $278,208
d. $448,000
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