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Calculate the Net Present Value (NPV) of the following cash flow projections based on a required rate of 10.5%: Year Cash Flow 0 (120,000) 1

Calculate the Net Present Value (NPV) of the following cash flow projections based on a required rate of 10.5%:

Year Cash Flow

0 (120,000)

1 35,000

2 47,500

3 55,000

4 62,000

Is this a good project for the business to accept? Explain why or why not.

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