Calculate the Net Present Value (NPV) of the following cash flow projections based on a  required rate of 10.5%:                         Year 0 1 2 3 4         Cash Flow (120,000) 35,000 47,500 55,000 62,000                             Is this a good project for the business to accept?  Explain why or why not.           Answer:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Calculate the Net Present Value (NPV) of the following cash flow projections based on a  required rate of 10.5%:    
                   
Year 0 1 2 3 4        
Cash Flow (120,000) 35,000 47,500 55,000 62,000        
                   
Is this a good project for the business to accept?  Explain why or why not.          
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