We are examining a new project. Suppose we think it is likely that expected sales...

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We are examining a new project. Suppose we think it is likely that expected sales will be either 9,500 units if the project is a success or revised downward to 3,000 units if the project is not a success. We expect to $63 net cash flow apiece for the next 10 years. The relevant discount rate is 14 percent, and the initial investment required is $1,600,000. At the end of the first year, the project can be dismantled and sold for $1,200,000. What is the NPV of the project when it is a failure? - $614,154.14 $116,287.59 $570,133.13 $381,578.95 $453,845.54

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