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Ignore income taxes

$42,500 10 years ABC Company Calculated the NPV of a project and found it to be: The projects life was estimated to be: The

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Answer #1

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

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