Calculate the net present value on this project

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Question - Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $122,050. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,500, and annual cash outflows would increase by $39,800. The company's required rate of return is 12%. Calculate the net present value on this project and determine whether the project should be accepted.

Reference no: EM131632945

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