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Sandstone, Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $80000. The future cash inflows from its project
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Sandstone, Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $80000. The future cash inflows from its project are $40000, $40000, $30000 and $30000 for years 1, 2, 3 and 4, respectively. Sandstone uses the net present value method and has a discount rate of 12%. Will Sandstone accept the project?
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