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If the cost of a new production line is $40,000 and the expected free cash flows resulting from this new line are as follows Inflow year 1 12000 Inflow year 2 12000 Inflow year 3 12000 Inflow year

If the cost of a new production line is $40,000 and the expected free cash flows resulting from this new line are as follows

Inflow year 1
12000
Inflow year 2
12000
Inflow year 3
12000
Inflow year 4
12000
And the required rate of return is 10 percent. Then the NPV of the project would be :-

Select one:
a. 1960
b. (1960)
c. 38,040
d. 8000
e. (8000)

Apr 15 2021 View more View Less

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