A Company is considering investing in a new dock that will cost $350,000. The company...
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A Company is considering investing in a new dock that will cost $350,000. The company expects to use the dock for 5 years, after which it will be sold for $90,000. LakeFront anticipates annual net cash inflows of $85,000 resulting from the new dock. Instructions
Calculate the net present value of the dock assuming the company's cost of capital is 10%.
Calculate the net present value of the dock assuming the company's cost of capital is 15%.
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