Question: ABC Corp. is analyzing a project that is expected to increase after-tax cash flows by $6.70 million per year for 5 years. They spent $1

ABC Corp. is analyzing a project that is expected to increase after-tax cash flows by $6.70 million per year for 5 years. They spent $1 million last year on consulting fees and need to spend $23.60 million in equipment today. What is the net present value of the project, if the required return is 10.00%? Ignore the impact of taxes and depreciation.

a.-$1,992,515

b.-$16,094,242

c.$798,271

d.$2,798,271

e.$1,798,271

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