An investment requires an initial outlay

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Reference no: EM13919389

An investment requires an initial outlay of $50,000, and is expected to generate cash flows of $13,000 a year for eight years. The required return is 11%. Determine the replacement chain NPV for this investment to compare it to a mutually exclusive alternative with a 12 year life.

a. $53,782

b. $42,630

c. $21,320

d. $92,630

Reference no: EM13919389

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