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Question
Ellmann Systems is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected.
r: 9.00%
Year 0 1 2 3
Cash flows -$1,000 $500 $500 $500
a. $265.65
b. $278.93
c. $292.88
d. $307.52
e. $322.90
Answer
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