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Duty Calls has developed a project that requires an immediate investment of $260. The project's long-term cash flows are...

Duty Calls has developed a project that requires an immediate investment of $260. The project's long-term cash flows are $115 for 5 consecutive years beginning in one year, and the project has a required rate of return of 8%. Based on these estimates, what is the project's NPV.

Project NPV: $

Place your answer in dollars and cents. Do NOT include a dollar sign or a comma in your NPV. For example, an answer of ten thousand should be placed as 10000. If applicable, indicate negative amounts with a minus sign in front of the number.

Work your analysis using at least 4 decimal places of accuracy.

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Answer #1

Required return = 8 % - 260 115 115 115 115 115 @8. NPV + & 115 1.00 115 (1.08) 115 (1-08)3 115 (.08)4 + 115 - 260 (108)5 106

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