Nicole and others, thanks for addressing the opening question this week. NPV practice About six years ago,

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Question:

Nicole and others, thanks for addressing the opening question this week.

NPV practice

About six years ago, Riley Enterprises incurred $

45, 000

to increase its store's capacity. Back then, it thought the increase in capacity would increase cash inflows by $

6, 000 .

Looking back, though, the company believed the increase in capacity resulted in cash inflow increases by $

8, 000

in each of the last six years.

The company

s desired rate of return is

10 % .

What was the net present value actually achieved for this investment? Show your work.

Posted Date: May 15, 2024 02:12 PM

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Nicole and others, thanks for addressing the opening question this week. NPV practice About six years ago,

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Given Information Initial investment Outflow 45000 Expected cash inflow increase per yea... View the full answer

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