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You are a financial analyst for Alamo Company. The director of capital budgeting has asked you to analyze the proposed capital investment project. The project
You are a financial analyst for Alamo Company. The director of capital budgeting has asked you to analyze the proposed capital investment project. The project has an initial cost of $10,000 (invested in year 0), and the required rate of return is 10 percent. Find the Net Present Value if the project's expected cash flows are as follows:
Year | Project Expected Cash Flows |
0 | $(10,000) |
1 | 6,500 |
2 | 3,000 |
3 | 3,000 |
4 | 1,000 |
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