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What is the net present value of opportunity

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Locker Inc. sells swimming apparel and accessories; its WACC is 10.4 percent. Time Machine Inc. sells watches and has a WACC of 12.7 percent. Swim Locker is considering adding waterproof watches to their product line. The initial cash outlay for the watch project is $165,000. The expected net cash inflows (incremental to the watch project) are $71,000 a year for 3 years. What is the net present value of this opportunity for Swim Locker?

Reference no: EM133060550

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