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The Spring Water Company uses both the Net Present Value and the Payback Period to evaluate their projects. The Company's required rate of return

   

The Spring Water Company uses both the Net Present Value and the Payback Period to evaluate their projects. The Company's required rate of return on this project is 11.3% and the required payback period is no more than 6 years. The cash flow for the project has been determined to be: < Year 0 1 2345 5 Cash Flow ($158,000) $46,730 $51,270 $69,930 $10,000 ($46,000) Required: A. Calculate the Net Present Value for this project B. Calculate the Payback Period for this project. C. Should the Spring Water Company accept or reject this project? Why? (

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A To calculate the Net Present Value NPV for the project we use the formula NPV sumt0N CFt1 rt Where ... blur-text-image

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