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What is the NPV of this project

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Reference no: EM132533623

Question - Food2U Ltd. is evaluating a proposal to upgrade its fleet of delivery vehicles at a cost of $1,125,000. Doing so should yield the following incremental cash flows:

Years 1-9 $175,000

Year 10 $450,000

What is the NPV of the project if the required rate of return is 9% p.a.?

a. $131,361

b. $144,864

c. $114,253

d. $188,175

e. None of the other answers is correct

Reference no: EM132533623

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