Answer- The expected annual cash flow for ABC Company was =$120796.
Explanation- Explanation-Net present value = Present value of cash inflows – Total outflows
$42500 = (Annual cash flow*5.650) - $640000
Annual cash inflow = ($640000+$42500)/5.650
= $120796
Ignore income taxes $42,500 10 years ABC Company Calculated the NPV of a project and found...
Income taxes may be ignored for this problem.
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