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Net present value

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Practice Problem 36. Three potential investment projects (A, B, and C) at Nit Corporation all require the same initial investment, have the same useful life (3 years), and have no expected salvage value. Expected net cash inflows from these three projects each year is as follows:

A B C
Year 1 $1,000 $2,000 $3,000
Year 2 $2,000 $2,000 $2,000
Year 3 $3,000 $2,000 $1,000

What can be determined from the information provided above?

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The net cash flows for the three projects suggest equal total net cashflow of $6,000.

The total net cash inflow for the three projects are
Project A = ...

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