1. (20 points) An investment opportunity costing $85,000 is expected to yield net cash flows of...
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1. (20 points) An investment opportunity costing $85,000 is expected to yield net cash flows of $15,000 annually over six years. Calculate the NPV of the investment at a discount rate of 12%? b. Does this capital project appear to be a favorable investment? Why or why Not? 1. (20 points) An investment opportunity costing $85,000 is expected to yield net cash flows of $15,000 annually over six years. Calculate the NPV of the investment at a discount rate of 12%? b. Does this capital project appear to be a favorable investment? Why or why Not?
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