Canyon Company is considering an investment of $45,000. Data related to the investment are as...
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Accounting
Canyon Company is considering an investment of $45,000. Data related to the investment are as follows:
| Year | Cash Flow |
| 1 | $15,000 |
| 2 | 18,000 |
| 3 | 22,500 |
| 4 | 30,000 |
| 5 | 15,000 |
Cost of capital is 18%. What is the net present value of the investment, assuming no taxes are paid? (Round to the nearest dollar.)
a.
$10,500
b.
$55,500
c.
$61,366
d.
$16,367
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