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The Horizon Company will Invest $69,000 in a temporary project that will generate the following cash Inflows for the next three years. Use for an
The Horizon Company will Invest $69,000 in a temporary project that will generate the following cash Inflows for the next three years. Use for an approximate answer but calculate your final answer using the formula and financlal calculator methods. The firm will also be required to spend $19,000 to close down the project at the end of the three years. a. Compute the net present value If the cost of capltal is 9 percent. Note: Negatlve amount should be Indlcated by a minus sign. Do not round Intermedlate calculations and round your answer to 2 decimal places. b. Should the Investment be undertaken? No Yes Present value of $1,PVIF PV=FV[1/(1+i)n]
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