Question: What is the net present value of a replacement project whose cash flows are -$740,000; $557,000; $752,000; and $118,000 for years 0 through 3, respectively?

What is the net present value of a replacement project whose cash flows are -$740,000; $557,000; $752,000; and $118,000 for years 0 through 3, respectively? The firm has decided to assume that the appropriate cost of capital is 15.5% p.a. (round to the nearest dollar)

a.

$382542

b.

$469917

c.

$231898

d.

$1862542

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