Temporary project that will generate the cash inflows

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Reference no: EM131055200

The Hillary Company will invest $80,000 in a temporary project that will generate the following cash inflows for the next three years.

Year Cash Flow

1 $25,000

2 33,000

3 45,000

The firm will also be required to spend $10,000 to close down the project at the end of the three years. If the cost of capital is 10 percent, should the investment be undertaken?

Reference no: EM131055200

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