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What is the net present value of the project

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Reference no: EM132483587

Altman Hydraulic Corporation will invest $182,000 in a project that will produce the following cash flows. The cost of capital is 10 percent. (Some projects may incur negative cash flows in later years, such as a mining project that may have to restore lands to their original condition after extracting the ore and when positive cash flows dwindle.)

Year        Cash Flow

1year       $40,000

2 year    52,000

3 year (46,000)

4 year   60,000

5 year    142,000

Question a. What is the net present value of the project? (Round the intermediate calculations to the nearest whole dollar. Round the final answer to the nearest whole dollar. Negative answer should be indicated by a minus sign.)

Question b. Should the project be undertaken?

Reference no: EM132483587

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