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A proposed project requires an initial cost of $75,000 for equipment and an additional cash outflow of $25,000 in Year 1 to cover operating costs.
A proposed project requires an initial cost of $75,000 for equipment and an additional cash outflow of $25,000 in Year 1 to cover operating costs. During Years 2 through 4, the project will generate cash inflows of $55,000 a year. What is the Net Present Value of this project at a discount rate of 12%? $16,161.36 $20,625.64 $65,268.50 $14,367.47 $9,385.06
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