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Suppose Omni Consumer Productss CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does
Suppose Omni Consumer Productss 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 $325,000
Year 2 500,000
Year 3 500,000
Year 4 425,000
If the projects weighted average cost of capital (WACC) is 10%, what is its NPV?
A. $314,597
B. $299,616
C. $284,635
D. $269,654
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