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A contract is estimated to yield net annual returns of $24,000 for nine years. To secure the contract, an immediate outlay of $125,000 is required.

A contract is estimated to yield net annual returns of $24,000 for nine years. To secure the contract, an immediate outlay of $125,000 is required. Interest is 13% compounded annually. Calculate the net present value (NPV) of the contract and determine whether the project should be accepted or rejected according to the net present value criterion.

The net present value of the project is ______

Should the project be accepted or rejected? ______

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