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Determine the net present value of the expansion project

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Problem - Net present value - The Cambridge Company is considering expansion into the South. The expansion effort is expected to cost $215,000. The net cash flows expected from this investment are $25,000 per year for the first two years, and $40,000 per year for the remaining eight years of the project life.

Required - Determine the net present value of the expansion project assuming a minimum desired rate of return of 12%.

Reference no: EM132690551

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