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Always Rite Corporation Is Considering a Project with Annual After-Tax

Question 45

Multiple Choice

Always Rite Corporation is considering a project with annual after-tax cash flows of $8000 per year for 5 years. The company's cost of capital is 5%. Using the net present value method, what is the maximum amount that the company should invest?


A) $22 985
B) $27 472
C) $34 636
D) $33 908

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