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    Exam 14: Differential Analysis, Profitability Analysis and Capital Budgeting
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    Anton Wine Company Is Considering a Project with Annual After-Tax
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Anton Wine Company Is Considering a Project with Annual After-Tax

Question 8

Question 8

Multiple Choice

Anton Wine Company is considering a project with annual after-tax cash flows of $4000 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) $16 316
B) $14 556
C) $17 318
D) $13 434

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