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A project will produce cash inflows of $3,100 a year for 3 years with a final cash inflow of $4,400 in year 4. The projects

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Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=3100/1.16+3100/1.16^2+3100/1.16^3+4400/1.16^4

=$9392.34

NPV=Present value of inflows-Present value of outflows

=9392.34-10400

=($1007.66)(Approx)(Negative).

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