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Calculate the Net Present Value of a project that has upfront costs of $124,000 and end-of-year annual cash flows of $30,000 for five years, if

Calculate the Net Present Value of a project that has upfront costs of $124,000 and end-of-year annual cash flows of $30,000 for five years, if the appropriate discount rate is 6.5 percent. Suppose that discount rate is the borrowing cost for the project. Show that this projects cash flows can pay off a loan with an annual interest rate of 6.5 percent over the next five years.

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