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A company is considering a project that will last for 4 years with no residual value. The project has the following cash flows and details:
A company is considering a project that will last for 4 years with no residual value. The project has the following cash flows and details: Period 0: Cash flow =$165,000 (Cost of project) Period 1: Cash flow =$85,000, Net Income =$47,500 Period 2: Cash flow =$66,000, Net Income =$28,500 Period 3: Cash flow =$50,000, Net Income =$12,500 Period 4: Cash flow =$50,000, Net Income =$12,500 Average Book Value =$75,000 The required annual return on projects of this risk is 7%. What is the net present value of the project? NPV =$ (Round to the nearest dollar and do NOT use commas in your response)
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