Question: Moving to another question will save this response. Question 16 5 points Save Antw Consider a capital expenditure project to purchase and install new equipment
Moving to another question will save this response. Question 16 5 points Save Antw Consider a capital expenditure project to purchase and install new equipment with an initial cash outlay of $20,000. The project is expected to generate net after-tax cash flows each year of $5800 for ten years, and at the end of the project, a one-time after-tax cash flow of $11,000 is expected. The firm has a weighted average cost of capital of 12 percent and requires a 5-year payback on projects of this type. Determines whether this project should be accepted or rejected using NPV O Accept since NPV is $61,963.22 and is greater than zero O Reject since NPV is-$61,963.22 and is less than zero O Accept since NPV-$41,936.22 and is greater than zero O Accept since NPV is $21,963.22 and is greater than zero None of the listed choices is correct
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