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Question
Yoga Center Inc. 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: 14.00%
Year 0 1 2 3 4
Cash flows -$1,200 $400 $425 $450 $475
a. $41.25
b. $45.84
c. $50.93
d. $56.59
e. $62.88
Answer
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