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A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 Year 3 Total

A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 Year 3 Total $4000 $15,000 $6,000 $25,000 Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below. i = 10% i = 10% i = 10% n = 1 n = 2 n = 3 .9091 .8264 .7513 $6,217.50 ($4,459.80) ($6,217.50) $8,275.00 $0.00

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