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(NPV) Bill Scott estimates that a project will involve an outlay of $125,000 and will return $40,000 per year for six years. The required return is 12%. a. What is the NPV using Bill‚s estimate? b. David Scott is less optimistic about the project. David thinks the outlay will be 10% higher, the annual cash flows will be 5% lower, and the project will have a five-year life. David does agree with Bill‚s required return. What is the NPV using David‚s estimates?

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