Solution-What the net present value of the project would be

What the net present value of the project would be

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Reference no: EM132650666

Problem 1: Daniel Company is considering the purchase of production equipment that costs $300,000 and has an expected life of 5 years (no salvage value). The equipment is expected to generate annual cash inflows of $100,000. The firm's cost of capital is 14%. If the cash inflows occur at the end of each year, the net present value of the project would be:

Option 1: $36,000

Option 2: ($43,300)

Option 3: ($36,000)

Option 4: $43,300

Reference no: EM132650666

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What the net present value of the project would be

Reference no: EM132650666

Reference no: EM132650666

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