Vancouver Salmon Farm Inc.'s current operations will generate cash flows of $100,000 in year one,$115,000 in year two,and $125,000 in year three.The company is considering a new investment,which requires an immediate cash outlay of $300,000.With the new investment,the company can instead expect to have cash flows of $250,000 per year for the next three years.The appropriate discount rate is 15 percent.What is the incremental NPV of the new investment?
A) $14,703.71
B) $65,439.36
C) $256,107.57
D) $270,806.28
Correct Answer:
Verified
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