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Net Present Value for Skyline Corp.

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Skyline Corp will invest $130,000 in a project that will not begin to produce returns until after the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods) the annual cash flow will be $34,000. if the cost of capital is 12% should this project be undertaken?

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This solution is comprised of a detailed explanation to answer the request of the assignment in text file.

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Please find my response in the attached file.

NPV = sum of CFt where CF is the cash flow
(1 + k)t k is the cost of capital
t is ...

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