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What is the net present value of the project

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Question - Ignore income taxes in this problem - Lumbay Company has provided the following data concerning a proposed investment project: Initial investment P861,000 Annual cash receipts P603,000 Life of the project 5 years Annual cash expenses P332,000 Salvage value P129,000 The entire initial investment without any reduction for salvage value will be depreciated over 3 years. The company uses a discount rate of 11%. What is the net present value of the project?

Reference no: EM132893215

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