A company is considering a project with a cost of $248,000. The cash flows for the project are provided in the table below. If the required return for the project is 14.2%, what is the project's NPV? Year         CF 1              $68,500 2             $72,800 3             $75,300 4             $81,400 5             $78,200   $81,422 $128,200 $6,481 $222,838 $254,481

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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A company is considering a project with a cost of $248,000. The cash flows for the project are provided in the table below. If the required return for the project is 14.2%, what is the project's NPV?

Year         CF

1              $68,500

2             $72,800

3             $75,300

4             $81,400

5             $78,200

 

$81,422

$128,200

$6,481

$222,838

$254,481

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