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Problem

Computing net present value. Gators, Inc. is considering a project that requires an initial investment of $2,000,000, and that will generate the following cash inflows for the next five years: (EXCEL)

Year Cash Inflow at End of Year

1 $300,000

2 400,000

3 800,000

4 800,000

5 600,000

Calculate the net present value of this project if Gator's cost of captial is:

a. 12 present

b. 20 present.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92748880

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