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stranahan stranahan
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7 years ago
Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo uses the net present value method and has a discount rate of 11%. Will Geronimo accept the project?
A) Geronimo rejects the project because the NPV is about -$2,375.60.
B) Geronimo accepts the project because the NPV is greater than $10,000.00.
C) Geronimo rejects the project because the NPV is about -$22,375.73.
D) Geronimo rejects the project because the NPV is about -$12,375.60.
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
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crackerspoppycrackerspoppy
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stranahan Author
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#2
7 years ago
Thank you very much for this. It's really helpful.
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