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show work Question 1 (evaluating investment projects) Generic Motors Corporation is planning to invest $50,000 in year zero (today) in new equipment. This investment is
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Question 1 (evaluating investment projects) Generic Motors Corporation is planning to invest $50,000 in year zero (today) in new equipment. This investment is expected to generate net cash flows of $20,000 a year for the next 4 years (years 1-4). The salvage value after 4 years is zero. The discount rate (cost of capital) is 20\% a year. Required: a)What is the net present value (NPV) of this project? (round to the nearest integer) b)Should the firm invest, based on NPV? Yes No Step by Step Solution
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