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Q1. What is the net present value of a project with the following cash flows if the required rate of return is 8 percent? (Hint:

Q1. What is the net present value of a project with the following cash flows if the required rate of return is 8 percent?

(Hint: Use NPV formula in excel)

Rate 8.00%

Initial Investment 55,000.00

Year 1

Year 2

Year 3

Year 4

PV of Cash Flows (hint use NPV formula) l

ess investment

Difference

Should this project be accepted or rejected?

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