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A company uses an 8% discount rate and has a decision to make between four projects. Project 1 has an annual cash inflow of $25,000 for 5 years.Project 2 has a one time cash inflow of $157,000 in 6 years.Project 3 has an annual cash inflow of $40,000 for 3 years.Project 4 has a one time cash inflow of $215,000 in 10 years.If the company selects the project with the highest Net Present Value, then which project should the company select?

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Accounting Basics, Accounting

Category:- Accounting Basics
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