Question: DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next

 DYI Construction Co. is considering a new inventory system that will
cost $750,000. The system is expected to generate positive cash flows over
the next four years in the amounts of $350,000 in year one.

DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one. $325,000 in year two, and $150,000 in year three. DYI's required rate of return (or cost of capital) is 8%. What is the net present value of this project? $21,864 $28.216 $28,234 $15.567 DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, and $150,000 in year three. DYI's required rate of return (or cost of capital) is 8%. What is the net present value of this project? $21,864 O - $28,216 $28,234 0 - $15.567 PAYTIME INC. plans to purchase a machine that will cost $550,000. The machine is expected to generate positive free cash flows over the next four years in the amounts of $150,000 in year one, $100,000 in year two, $200,000 in year three, and $200,000 in year four, DYI's required rate of return (or cost of capital) is 5%. What is the present worth of the expected future cash flows of this machine? O 570,868.11 490,345 690,345.54 398.876.20

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