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Franklin Mints, a confectioner, is looking to purchase a new jellybean-making machine at a cost of $312,500. The company projects that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent, what is the net present value (NPV) for the project?

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Solution Summary

This solution shows the steps for calculating the net present value (NPV) of the given project.

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