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Several companies, including Hoda Diagnostic and Seneca West Science, are considering project which is believed by all to have a level of risk that is

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Several companies, including Hoda Diagnostic and Seneca West Science, are considering project which is believed by all to have a level of risk that is equal to that of the average- risk project at Hoda Diagnostic. Project X is a project that would require an initial investment of 586,000 and then produce an expected cash flow of $112.000 in 4 years. Project X has an internal rate of return of 6.83 percent. The weighted average cost of capital for Hoda Diagnostic is 5.92 percent and the weighted average cost of capital for Seneca West Science is 8.41 percent. What is the NPV that Seneca West Science would compute for project a. $2.983 (plus or minus 520) b. 519.740 (plus or minus 520) OC -54,915 (plus or minus 520) d.-511 (plus or minus 520) e. None of the above is within $20 of the correct

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