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Procter & Gamble Co. is evaluating a project with initial investment (at year 0) of $40,000 that is expected to produce annual profits of $24,000
Procter & Gamble Co. is evaluating a project with initial investment (at year 0) of $40,000 that is expected to produce annual profits of $24,000 for 4 years, starting at year 1. One year after the project ends, there will be an environmental clean-up cost of $26,000 (at year 5). If Procter & Gamble Co.s cost of capital is 8.00%, what is the net present value (NPV) of this project?
$39,491.04
$13,491.04
$21,795.88
$30,000.00
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