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in the analyst brings you a project. She expect there to be an operating cash flow...

in the analyst brings you a project. She expect there to be an operating cash flow of 500,000 for the first year and then it will decrease by 10% for six more years. You need to contribute 70,000 in networking capital. You will salvage 50% of that back when the project ends in seven years. You need to purchase $1,800,000 of equipment at the beginning and then another hundred thousand dollars in year three. No salvage for equipment. You know your company's WACC is 9% and this project is very similar to your company's operations. What is the NPV of this project and should you do it?

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