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The Horizon Company will invest $96,000 in a temporary project that will generate the following cash inflows for the next three years Use Appendix B

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The Horizon Company will invest $96,000 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 1 $34,080 2 28,000 3 79,000 The frm will 'so be required to spend $16,000 to close down the project at the end of the three years a. Compute the net present value if the cost of capital is 11 percent (Negative amounts round Intermediate ceiculations and round your answer to 2 declmal places) Net present value ces b. Should the investment be undertaken? O Yes O No

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