Ellmann Systems is considering a project that has the following cash flow and WACC data. What...

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Answer 1

Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=1500/1.12+15000/1.12^2+900/1.12^3

=$13937.80

NPV=Present value of inflows-Present value of outflows

=$13937.80-$10,000

=$3938(Approx).

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Answer 2

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