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Northwest Industries Is Considering a Project with the Following Cash

Question 154

Multiple Choice

Northwest Industries is considering a project with the following cash flows:
Initial Outlay = $126,000
Cash Flows: Year 1 = $44,000
Year 2 = $59,000
Year 3 = $64,000
Compute the net present value of this project if the company's discount rate is 14%.


A) -$249,335
B) -$138,561
C) $239,209
D) $725,000

Correct Answer:

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