Analyzes project that requires an immediate outflow

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The Allied Corporation analyzes a project that requires an immediate outflow (an initial investment) of $455. Allied estimates that at the end of the first year the project will generate a positive cash flow of $660, but that at the end of the second year, when the project ends, it will generate a negative cash flow of $80. The project's required rate of return is estimated to be 7.50%.

Reference no: EM131056498

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