Considering requires initial cash outlay

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Reference no: EM131933760

A project Nirrti is considering requires an initial cash outlay of $717,000 for equipment. She expects to spend an additional $72,000 in the first year to cover costs as the project will produce negligible cash inflows for that year. During years 2 through 6, she expects to receive cash inflows of $316,000 a year. What is the net present value of this project at a discount rate of 12.5 percent?

Reference no: EM131933760

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