Dowling Sportswear is considering building a new factory to produce aluminum baseball bats.  This project would require an initial cash outlay of ​$5,500,000 and would generate annual net cash inflows of ​$900,000 per year for 9 years.   Calculate the​ project's NPV using a discount rate of 8 percent.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...
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Dowling Sportswear is considering building a new factory to produce aluminum baseball bats.  This project would require an initial cash outlay of ​$5,500,000 and would generate annual net cash inflows of ​$900,000 per year for 9 years.  

Calculate the​ project's NPV using a discount rate of 8 percent.

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