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Assume an individual makes a lump sum investment at the beginning of year one of $26,486, the present value of which is $26,486. The investor's
Assume an individual makes a lump sum investment at the beginning of year one of $26,486, the present value of which is $26,486. The investor's discount rate, for an alternative safe investment, is 13.06 percent after tax. The expected return on this investment (received at each year-end) is as follows.
Year 1: 1,019
Year 2: 16,624
Year 3: 16,803
Year 4: 9,817
Year 5: 3,596
What is the net present value of the investment under consideration?
Round the answer to two decimal places.
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