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Your firm is considering a project that costs $64,988. This opportunity will provide cash flows of...

Your firm is considering a project that costs $64,988. This opportunity will provide cash flows of $14,511, $26,263, $15,280, and $28,209 over the next four years. Your firm has a required rate of return of 17%.

What is the project's npv?

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Answer #1

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

=14,511/1.17+26,263/1.17^2+15,280/1.17^3+28,209/1.17^4

=56182.16

NPV=Present value of inflows-Present value of outflows

=56182.16-64,988

=($8805.84)(Approx)(Negative)

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