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The Horizon Company will invest $77,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B
The Horizon Company will invest $77,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods Year Cash Flow 34,000 40,000 The firm will also be required to spend $20,000 to close down the project at the end of the three years. a. Compute the net present value if the cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value
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