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Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $122,050. It will have a useful life of 4
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $122,050. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,500, and annual cash outflows would increase by $39,800. The companys required rate of return is 12%. Calculate the net present value on this project and determine whether the project should be accepted.
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