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Cascade, Inc

Question 113

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Cascade, Inc., has assembled the estimates shown below relating to a proposed new product. These estimates are based on a 5-year project life, at the end of which the new equipment would be sold, working capital would revert to other uses in the company, and the product would be discontinued. Cascade uses a discount rate of 18%. Cascade, Inc., has assembled the estimates shown below relating to a proposed new product. These estimates are based on a 5-year project life, at the end of which the new equipment would be sold, working capital would revert to other uses in the company, and the product would be discontinued. Cascade uses a discount rate of 18%. Required: Compute the net present value of the new product. Required:
Compute the net present value of the new product.

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