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Forever Clean Corporation is considering a project with annual after-tax cash flows of $6000 per year for 6 years. The company's cost of capital is 6%. Using the net present value method, what is the maximum amount that the company should invest? (Round to the nearest whole dollar) .
Present Value
The present-day financial assessment of a sum of money to be received later or a series of cash flows, based on a specific rate of return.
Discount Rate
In discounted cash flow analysis, the Discount Rate refers to the interest rate employed to ascertain the present value of future cash flows.
Future Cash Flows
Future cash flows refer to the estimated amounts of money to be received or paid by a business in the future, often used in investment analysis and valuation.
Present Value
The immediate monetary value of a future sum of money or cash flow sequences, utilizing a known rate of return for calculation.
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