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Problem:

Coughlin Motors is considering a project with the following expected cash flows:

NINV=$700millin
NCF1==$200million
NCF2=$370million
NCF3=$225million
NCF3=$700millin

If the cost of capital is 10% and the risk free rate if interest is 5%, what is the project's payback period?

Required:

Question: Calculate the project's net present value(NPV)

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167452

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