Compute the net present value

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Question - The Horizon Company will invest $79,000 in a temporary project that will generate the following cash inflows for the next three years.

Year Cash Flow

1) $22,000

2) $35,000

3) $42,000

The firm will also be required to spend $21,000 to close down the project at the end of the three years.

Compute the net present value if the cost of capital is 9 percent.

Reference no: EM132158586

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