Question: Edinburgh Co. is considering a new project that will cost $400,000. The expected net cash flows from this project are$100,000 per year for 6 years.

Edinburgh Co. is considering a new project that will cost $400,000. The expected net cash flows from this project are$100,000 per year for 6 years. If Edinburgh's weighted average cost of capital (WACC) is 8%, what is the project's net present value (NPV)?

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