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The Windom Co. is considering a project with the following operating cash flows. Its initial cash flow is ($2,000) and its terminal (non-operating) cash flow is $500. WACC = 10%. Compute its NPV to see if it is acceptable.

Year 1 2 3

Operating CF $1,000 $1,200 $1,000

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92881259

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