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The pepper shop is evaluating a capital expenditure proposal with the following predicted cash flows: initial investment- $(40000) operations, each year for 4 years- 15000

The pepper shop is evaluating a capital expenditure proposal with the following predicted cash flows:

initial investment- $(40000)

operations, each year for 4 years- 15000

salvage- 5000

At a discount rate of 12%, the projects net present value is: (use the pivot tables to determine this)

a. $2375

b. $5555

c. $8735

D. $ 20740

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