Skyline corp will invest 130000 in a project that will not, Ask an Expert

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Skyline Corp. will invest $130,000 in a project that will not begin to produce returns until after the third year. From the end of the third year until the end of the 12^th year (10 periods), the annual cash flow will be $34,000. If the cost of capital is 12%, should this project be undertaken?

Find the net present value of Skyline's investment at its internal rate of return. Explain your answer.

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Category:- Basic Finance
Reference No.:- M9791971

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