Sample problems for capital budgeting

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Sample problems for Capital Budgeting

Q1. A project requires an initial investment of $225,000 and is expected to generate the following net cash inflows:

Year 1: $95,000

Year 2: $80,000

Year 3: $60,000

Year 4: $55,000

Required: Compute net present value of the project if the minimum desired rate of return is 12%.

Reference no: EM133109639

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