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Question
Tangerine Inc. is evaluating a capital project for investment. The initial cash outflow in Year 0 is $1,500 followed by cash inflow of $500 each year for four years. Which of the following is the terminal value of the project? Assume the required rate of return is 12 percent.
a. $3,336.78
b. $2,486.23
c. $2,389.66
d. $1,889.45
e. $1,518.67
Answer
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