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Sally Mander has calculated the following capital budget for a proposed asset: initial investment $160,000 Year 1 RATFCF $45,000 Year 2 RATFCF $55,000 Year 3

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Sally Mander has calculated the following capital budget for a proposed asset: initial investment $160,000 Year 1 RATFCF $45,000 Year 2 RATFCF $55,000 Year 3 RATFCF $65,000 Year 4 RATFCF $75,000 Using a 12% required rate of return, what is the net present value (NPV)? $18,000 $27.000 $178,000 $187.000

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