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Compute the net present value of the project

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Question - Daniel Company is considering the purchase of production equipment that costs $300,000 and has an expected life of 5 years (no salvage value). The equipment is expected to generate annual cash inflows of $100,000. The firm's cost of capital is 14%. If the cash inflows occur at the end of each year, compute the net present value of the project?

a. $36,000

b. ($43,300)

c. ($36,000)

d. $43,300

Reference no: EM132681771

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