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The Wombat Resort is redoing its golf course at a cost of $2,744,320. It expects to...

The Wombat Resort is redoing its golf course at a cost of $2,744,320. It expects to generate cash flows of $1,223,445, $2,007,812, and $3,147,890 over the next three years. If the appropriate discount rate for the company is 13 percent, what is the NPV of this project? Select one: A. $7,581,072 B. $2,092,432 C. $4,836,752 D. $3,112,459

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Answer #1

We see that the NPV of the project is given as equal to=-2744320+1223445/1.13+2007812/1.13^2+3147890/1.13^3=2092431.674

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