The project requires and initial outlay

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Reference no: EM13951496

The project requires and initial outlay of $1,000,000. It is expected to generate net cash in-flows of $250,000 for the next five years. At the end of five years, Timmy will retire and the equipment will be sold for $500,000 (terminal value). The zoo uses a required rate of 10% to discount this project. Calculate the projects NPV

a. $293,321.52

b. $275,325.21

c. $258,157.35

d. $248,350.35

Reference no: EM13951496

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