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    NPV of a proposed investment proposal

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    (Ignore income taxes in this problem.) Chee Company has gathered the following data on a proposed investment project:
    Investment required in equipment $250,000
    Annual cash inflows $60,000
    Salvage value $0
    Life of the investment 6 years
    Required rate of return 6%

    The net present value on this investment is closest to:


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    Solution Summary

    Solution describes the steps for determining net present value of an investment proposal.