Using net present value when evaluating projects

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Reference no: EM131556840

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping’s cost of capital is 14.55 percent. What is the NPV of a project if the initial costs are $2,474,570 and the project life is estimated as 8 years? The project will produce the same after-tax cash inflows of $697,911 per year at the end of the year.

Reference no: EM131556840

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