Calculate the npv of this project

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Question - Tasmanian furniture considers the following investment project: Acquisition of a new equipment which costs $100,000 and have a useful life of 4 years. At the end of year 4, the resale value of this equipment is estimated at $20,000. The firm predicts an annual net cash inflow of $28,000. Calculate the NPV of this project if the required rate of return is 8%. Should the company accept this project?

Reference no: EM133125219

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