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Findell Corporation Is Considering Two Projects,A and B,and It Has

question 109

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Findell Corporation is considering two projects,A and B,and it has gathered the following estimates for the projects:  Project A  Project B  Useful life 5 years 5 years  Present value of cash inflows $84,360$55,100 Present value of cash outflows $77,000$49,000\begin{array}{|l|l|l|}\hline & \text { Project A } & \text { Project B } \\\hline \text { Useful life } & 5 \text { years } & 5 \text { years } \\\hline \text { Present value of cash inflows } & \$ 84,360 & \$ 55,100 \\\hline \text { Present value of cash outflows } & \$ 77,000 & \$ 49,000 \\\hline & & \\\hline\end{array} What is the net present value of cash flows for project B?

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Definitions:

Nominal Variable

A classification of categorical data where the order of the categories is not significant.

Dummy Variables

Variables used in regression analysis to represent subgroups of the sample in a binary form.

Grade Point Average

An average score representing the academic performance of a student, calculated from the grades obtained in their courses.

Indicator Variables

Dummy variables used in regression models to encode categorical data into numbers, typically 0 or 1, to include them in statistical analysis.

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