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Skyline Corp. will invest $220.000 in a project that will not begin to produce returns until the end of the 3rd year. From the end
Skyline Corp. will invest $220.000 in a project that will not begin to produce returns until the end of the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $57,000. Use a financial calculator, Excel, or Appendix B and Appendix D. a. Calculate the net present value of the cost of capital is 13 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. Should the project be undertaken? Yes O No
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