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Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know

Suppose Extensive Enterprisess CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know that the projects regular payback period is 2.5 years.

Year

Cash Flow

Year 1 $275,000
Year 2 $400,000
Year 3 $400,000
Year 4 $475,000

If the projects weighted average cost of capital (WACC) is 10%, what is its NPV?

$314,009

$330,536

$396,643

$347,063

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