Homework Answers
NPV = Present value of cash inflows - Present value of cash outflows
= -1,170 + 4,680*PVAF(2.4%, 3 years) - 5,850*PVF*(2.4%, 2 years)
= -1,170 + 4680*2.862 - 5,850*0.954
= $6,643.26
Yes, since NPV is positive
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