Question: Lambda Corporation is considering investing in a new project. The initial investment is $100,000, and the project is expected to generate cash flows of $30,000
Lambda Corporation is considering investing in a new project. The initial investment is $100,000, and the project is expected to generate cash flows of $30,000 per year for 5 years. The discount rate is 10%. Calculate the net present value (NPV) of the project and advise Lambda Corporation on whether to undertake the project.
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