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Project L costs $35,000, its expected cash inflows are $15,000 per year for 10 years, and...

Project L costs $35,000, its expected cash inflows are $15,000 per year for 10 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

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Expert Solution

Ans NPV = $ 43241.73

Year Project Cash Flows (i) DF@ 14% DF@ 14% (ii) PV of Project ( (i) * (ii) )
0 -35000 1 1                   (35,000.00)
1 15000 1/((1+14%)^1) 0.877                     13,157.89
2 15000 1/((1+14%)^2) 0.769                     11,542.01
3 15000 1/((1+14%)^3) 0.675                     10,124.57
4 15000 1/((1+14%)^4) 0.592                       8,881.20
5 15000 1/((1+14%)^5) 0.519                       7,790.53
6 15000 1/((1+14%)^6) 0.456                       6,833.80
7 15000 1/((1+14%)^7) 0.400                       5,994.56
8 15000 1/((1+14%)^8) 0.351                       5,258.39
9 15000 1/((1+14%)^9) 0.308                       4,612.62
10 15000 1/((1+14%)^10) 0.270                       4,046.16
NPV                     43,241.73

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