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Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the
Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). Youknow project's initial cost is $1,075,000 and project's regular payback period is 2.5 years.
Year 1 Year 2 Year 3 Year 4
$375,000 X 500,000 450,000
If the project's weighted average cost of capital (WACC) is 8%, find the project's NPV (rounded to the nearest dollar). Show all your work in finding the cash flow at time 2 and project's NPV.
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