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Postcompletion Audit
A. Two years ago, a new product capital project was approved for $75 million based upon the cash flows listed below. Calculate the net present value for the original proposal at an 18 percent discount rate.
Year
Original Proposal
0
$(75)
1
2
20
3
30
4
38
5
55
C. What additional questions would you want to ask Marketing regarding this new product and its forecasts for the remaining three years?
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