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A Certain Investment Will Require an Immediate Cash Outflow of $3

Question 12

Multiple Choice

A certain investment will require an immediate cash outflow of $3 million.At the end of each of the next three years,the investment will generate cash inflows of $1.3 million.If the discount rate is 10%,what is the project's NPV?


A) $211,734
B) -$303,886
C) $232,908
D) -$276,260

Correct Answer:

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