# Santana Co. is evaluating a project requiring a capital expenditure of \$790,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: YearNet IncomeNet Cash Flow1\$  75,000\$280,0002100,000300,0003109,000200,0004    36,000  120,000 \$320,000\$900,000 The company's minimum desired rate of return is 9%. The present value of \$1 at compound interest of 9% for 1, 2, 3, and 4 years is 0.9174, 0.8417, 0.7722, and 0.7084 respectively. Determine the net present value of the project.  Should Santana proceed?

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Santana Co. is evaluating a project requiring a capital expenditure of \$790,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows:

 Year Net Income Net Cash Flow 1 \$  75,000 \$280,000 2 100,000 300,000 3 109,000 200,000 4 36,000 120,000 \$320,000 \$900,000

The company's minimum desired rate of return is 9%. The present value of \$1 at compound interest of 9% for 1, 2, 3, and 4 years is 0.9174, 0.8417, 0.7722, and 0.7084 respectively.

Determine the net present value of the project.  Should Santana proceed?

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