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Problem:

Jamaica Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows of $2 million, $3 million, $4 million, and $5 million over the next four years. Its cost of capital is 16 percent.

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Question: What is the net present value of this project?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169512

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