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Suppose that MC Corporation expects a new project to yield $1000 in one year,$1200 in two...

Suppose that MC Corporation expects a new project to yield $1000 in one year,$1200 in two years and then $1400 in three years.The companys cost of capital is 11%.What is the value of project today?

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Value of the Project today is the Present value of Computation of Present value of Future Payments Cash PVE@1 Present 1% Values Year Flows (S 1,00) 1,200 1,400 900.90 973.95 0.7312 1,023.67 Present value2,898.52 0.9009 0.8116 Value of project today is S 2,898.52/. Approx.

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