Net cash flow and sum of material and labor cost of phase

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Reference no: EM131071054

With the present values of phase 1 material and labor costs of $610000 and $5080000, respectively, and phase 2 net cash flow of $7930670, will the company make a minimum 25% return on this investment? Hint: Enter the difference between the present values of phase 2 net cash flow and the sum of material and labor cost of phase 1. If the difference is positive, then the company makes the minimum 25% return.

Reference no: EM131071054

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