The risk adjusted discount rate for the firm is 12 and the

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Corporation considering the purchase of a new machine with an initial outlay of 4000. and expected cash flows in yrs. 1-4 for 2200 per yr. The risk adjusted discount rate for the firm is 12% and the risk free rate is 5%. Compute the net present value of this project.

A. $4300
B. $2181
C. $1899
D. $1535

Reference no: EM13572523

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