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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

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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 for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $21,800 2 34,800 3 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 of 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 b. Should the investment be undertaken? O NO Yos

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