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Your firm is evaluating a capital budgeting project. The estimated cash flows appear below. The board of directors wants to know the expected impact on
Your firm is evaluating a capital budgeting project. The estimated cash flows appear below. The board of directors wants to know the expected impact on shareholder wealth. Knowing that the estimated impact on shareholder wealth equates to net present value NPV you use your handy calculator to compute the value. What is the project's NPV Assume that the cash flows occur at the end of each year. The discount rate ie required rate of return, hurdle rate is
Round to nearest penny
tableYear cash flow,
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