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Question
Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
r: 10.00%
Year 0 1 2 3
Cash flows -$950 $500 $400 $300
a. $54.62
b. $57.49
c. $60.52
d. $63.54
e. $66.72
Answer
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