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Use the following information for the remaining questions: Beta Corporation is thinking about investing in a new piece of equipment at a total cost of
Use the following information for the remaining questions:
Beta Corporation is thinking about investing in a new piece of equipment at a total cost of $300,000. The project will last five years at which time the equipment will be worthless. His financial analyst has determined the following positive net income will result from this investment (NOTE: THIS IS NOT CASH!):
Year | Net Income |
1 | 32,500 |
2 | 45,000 |
3 | 28,000 |
4 | 38,000 |
5 | 34,000 |
Beta uses a WACC of 6.5% to evaluate projects of this nature.
Find the following (show your work):
NPV = ___________ % (round to x.xx)
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