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A firm is evaluating an investment proposal which has an initial investment of $5,000 and promises $2,000 per year in after-tax cash inflows for 4

A firm is evaluating an investment proposal which has an initial investment of $5,000 and promises $2,000 per year in after-tax cash inflows for 4 years thereafter. If the annual cost of capital is 5%, the net present value of this investment is _________.

a) $1,774.42

b) $3,000

c) $11,774.42

d) $2,091.90

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