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Using a required rate of return of 12%. Perpetual Power Machine Co. Purchase of a New High Machining Tool Year Cash Flow Year 1 $500
Using a required rate of return of 12%.
| Perpetual Power Machine Co. Purchase of a New High Machining Tool | |
| Year | Cash Flow |
| Year 1 | $500 |
| Year 2 | 500 |
| Year 3 | 3,000 |
| Year 4 | 3,000 |
| Year 5 | 10,000 |
What is this project's NPV if the initial capital investment is $7,162?
Select one:
A. $3,399
B. $12,000
C. $8,500
D. $3,000
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
