Vince plans to open a self - serve grooming center in astorefront. The grooming equipment will cost $480,000, to be paid immediately. Vince expects aftertaxcash inflows of $103,000 annually for eight years, afterwhich he plans to scrap the equipment and retire to thebeaches of Nevis. The first cash inflow occurs at the endof the first year. Assume the required return is 13percent. What is the project's PI? (Do not roundintermediate calculations. Round your answer to 3decimal places, e.g., 32.161.)

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Answered: Vince plans to open a self - serve…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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