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Problem:

The Blueberry Company is considering a project which will cost $452 initially. The project will not produce any cash flows for the first 3 years. Starting in year 4, the project will produce cash inflows of $483 a year for 6 years. This project is risky, so the firm has assigned it a discount rate of 16.7 percent.

Required:

Question: What is the net present value?

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166666

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