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Calculate the net present value

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Reference no: EM132787799

Question - Twelve Inch Toes Corp. will invest $199,000 in a project that will not begin to produce returns until the fourth year. From the end of the fourth year until the end of the tenth year (7 periods), the annual cash flow will be $52,000.

Required -

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

b. Should the project be undertaken?

Reference no: EM132787799

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