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ABC Corporation is considering a new project with an initial cost of $50,000. The project is expected to generate cash inflows of $10,000 per year for 7 years. The cost of capital is 12%. What is the net present value

ABC Corporation is considering a new project with an initial cost of $50,000. The project is expected to generate cash inflows of $10,000 per year for 7 years. The cost of capital is 12%. What is the net present value (NPV) of the project? Should the company accept the project? Show your calculations.

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The detailed answer for the above question is provided below To calculate the NPV of the project we View the full answer


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Intermediate Financial Management

Intermediate Financial Management

ISBN: 978-1285850030

12th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Posted Date: February 14, 2023 07:02:37
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