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Assume a potential project that would last 12 years costs $30,000 initially. However, the project is expected to provide periodic revenues of $12,500 in year
Assume a potential project that would last 12 years costs $30,000 initially. However, the project is expected to provide periodic revenues of $12,500 in year 3, $17,000 in year 8, and final revenue payment of $28,000 in year 12. What is the Net Present Value (NPV) of this investment if your guiding rate is 7%? Should you accept or reject this investment and why?
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