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Slam Dunk Donuts is planning to sell cakes. They will need to buy a new machine for $150,000 now and then spend another $325,000 at

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Slam Dunk Donuts is planning to sell cakes. They will need to buy a new machine for $150,000 now and then spend another $325,000 at the end of Year 3 to launch the project. It is then predicted to generate cash inflows of $156,000 in Years 4-5 and this will increase to $190,000 in Years 6-7 as the cake products get really popular. What is the present value of this cake project to Slam Dunk Donuts if the required rate of return is 10% p.a. compounded semi-annually? O $14,972.41 $13,986,60 O $10.599.42 $11.695.19 $12.987.64 Previous Next

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