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provide the solution to the question step by step ABC Company is studying a project that would have a five year life and require a

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ABC Company is studying a project that would have a five year life and require a $1 investment in the equipment. At the end of five years, the project would terminate and the equipment would have no value left over. The project would provide net income each year as follows: Project Revenue Less COGS Gross Margin Less: Operating Expenses Advertising and other fixed exp Salary Expense Amortization Expense Total Expenses Net Income 300,000 100,000 200,000 The company's discount rate is 25% 1) compute the net annual cash inflow from project 2) compute the net present value of the project. Is it acceptable?

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