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A project with an initial cost of $314,000 will generate no returns in the first two years of operations, and operating cash flows of $150,000
A project with an initial cost of $314,000 will generate no returns in the first two years of operations, and operating cash flows of $150,000 per year in Years 3, 4, and 5. The required rate of return is 7%. To which amount is the net present value of the project closest?
a. $61,900
b. $29,830
c. $393,645
d. $343,830
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