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Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know
Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Cash Flow Year 1 $275,000 Year 2 $425,000 Year 3 $425,000 Year 4 $475,000 If the project's weighted average cost of capital (WACC) is 10%, what is its NPV? $398,976 $365,728 $299,232 $332,480
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