Skyline corp will invest 130000 in project which will not

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Skyline Corp. will invest $130,000 in a project that will not begin to produce returns until after the third year. From the end of the third year until the end of the 12th year (10 periods), the annual cash flow will be $34,000. If the cost of capital is 12%, should this project be undertaken?

Find the net present value of Skyline's investment at its internal rate of return. Explain your answer.

Reference no: EM13476795

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