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QUESTION 5 An investment opportunity costing $85,000 is expected to yield net cash flows of...

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Accounting

QUESTION 5

An investment opportunity costing $85,000 is expected to yield net cash flows of $15,000 annually over six years.

Part A: Calculate the Net Present Value of the investment at a discount rate of 12%.

Part B: Does the capital expenditure appears to be a favorable investment? Why or Why not?

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