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A project initially costs $40,500 and will not produce any cash flows for the first 2 years. Starting in Year 3, it will produce cash
A project initially costs $40,500 and will not produce any cash flows for the first 2 years. Starting in Year 3, it will produce cash flows of $34,500 a year for 2 years. In Year 6, the project will end and should produce a final cash inflow of $12,000. What is the net present value of this project if the required rate of return is 18.5 percent?
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