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Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the
Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 13.80 percent. The initial outlay for the project is $463,728. The project will produce the following after-tax cash inflows of
Year 1: 186,964
Year 2: 56,937
Year 3: 194,703
Year 4: 139,082
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