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Project 1 requires an original investment of $ 9 6 , 3 0 0 . The project will yield cash flows of $ 1 6
Project requires an original investment of $ The project will yield cash flows of $ per year for years. Project has a computed net present value of $ over a year life. Project could be sold at the end of years for a price of $
Use the Present Value of $ at Compound Interest and the Present Value of an Annuity of $ at Compound Interest tables shown below.
Present Value of $ at Compound Interest
Year
Present Value of an Annuity of $ at Compound Interest
Year
a Determine the net present value of Project over a year life with residual value, assuming a minimum rate of return of If required, round to the nearest dollar.
$
b Which project provides the greatest net present value?
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