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Your firm has a potential project that will cost $5,000 now to begin. The project will then generate after-tax cash flows of $363 at the

Your firm has a potential project that will cost $5,000 now to begin. The project will then generate after-tax cash flows of $363 at the end of the next three years and then $1,706 per year for the three years after that. If the discount rate is 7.35% then what is the NPV?

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SOLUTION To calculate the NPV of the project we need to discount the aftertax cash flows to their pr... blur-text-image

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