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A firm is evaluating a 4 - year investment project. The project requires an initial outlay of $ 2 2 0 , 0 0 0

A firm is evaluating a 4-year investment project. The project requires an initial outlay of $220,000. The estimated future cash flow from the project is $50,000, $60,000, $80,000, and $90,000 for Years 1,2,3, and 4, respectively. The firm is 100% equity-financed and has a beta of 0.8. The risk-free rate is 2%, and the expected return on the market portfolio is 6%. Assuming that the project is as risky as the firm, what is the net present value (NPV) of the project?

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