In its first month of operations, Marigold Corp. made three purchases of merchandise in the following sequence: (1) 240 units at
1 answer:
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Answer:
The right solution is Option a (-$6,678).
Explanation:
Given that:
Up-front cost,
= $250,000
Expected cash flows,
= $110,000
Assuming cost of capital,
= 12%
Now,
The expected net present value will be:
=
=
= ($)