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Brambles Custom Construction Company is considering three new projects, each requiring an equipment investment of $26,840. E

The least desirable project based on payback period is Project AA (b) Compute the net present value of each project. (Enter n

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Answer #1
Investment = 26,840
life of project = 3 years
Cost of capital = 12%
Salvage value = 0
Year Cash flows PVF @ 12% PV cashflow
0 -26840 1.0000          (26,840)
1 8540 0.8929               7,625
2 10980 0.7972               8,753
3 14640 0.7118            10,420
NPV                  (41)
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