A firm is considering a three-year expansion project that will require an initial investment of...
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A firm is considering a three-year expansion project that will require an initial investment of $2,190,000. The project will require the firm to invest an additional $50,000 into inventory. The project will last three years and will generate additional operating cash flows of $850,000 per year.
What is the NPV of this project if the firms WACC is 7%?
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