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View History Bookmarks Window Help mathxi.com FIN 302A (4) Homework: Chapter 8 nal score: 0.5 of 1 pt 2 of 6 (6 complete) in, RP 8-3 (similar to) Save HW Score: 87 Question Help * sign i Horl kea: Your storage firm has been offered $96,400 in one year to store some goods for one year. Assume your costs are $96,800, payable immediately, and the cost of capital is 8.5%. Should you take the contract? Go to The NPV will be (Round to the nearest cent) 0.50 0.75 Enter your answer in the answer box and then click Check Answer.Explanation / Answer
NPV=
-96800+96400/(1+8.5%)^1
=-7952.07
As NPV is negative, not take this contract
the above is the answer
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