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hellchicken hellchicken
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Vancouver Salmon Farm Inc.'s current operations will generate cash flows of $100,000 in year one, $115,000 in year two, and $125,000 in year three. The company is considering a new investment, which requires an immediate cash outlay of $300,000. With the new investment, the company can instead expect to have cash flows of $250,000 per year for the next three years. The appropriate discount rate is 15%. What is the incremental NPV of the new investment?

▸ $270,806

▸ $65,439

▸ $14,704

▸ $256,108
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Corporate Finance

Corporate Finance


Edition: 5th
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smiller94107smiller94107
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A year ago
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hellchicken Author
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A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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Helped a lot
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Thanks for your help!!
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