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Is the project suitable at net present value

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Question - A company evaluates the investment in a salt mine. The initial investment would be $720,000 and the estimated annual cash flows over 4 years would be $260,000. The government demands that in the end it be invested to rehabilitate the mine area and a disbursement is estimated in year 4 for $75,000. Is the project suitable at net present value if its minimum desired return is 15%?

Reference no: EM133127102

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