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Question
Reed Enterprises 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 -$1,050 $450 $460 $470
a. $92.37
b. $96.99
c. $101.84
d. $106.93
e. $112.28
Answer
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