# Question

Corporation ABC invested in a project that will generate $60,000 annual after-tax cash flow in years 0 and 1 and $40,000 annual after-tax cash flow in years 2, 3, and 4. Compute the NPV of these cash flows assuming that:

a. ABC uses a 10 percent discount rate.

b. ABC uses a 7 percent discount rate.

c. ABC uses a 4 percent discount rate.

a. ABC uses a 10 percent discount rate.

b. ABC uses a 7 percent discount rate.

c. ABC uses a 4 percent discount rate.

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