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Consider the following project: Pay $ 3 0 , 0 0 0 now and receive $ 3 8 , 0 0 0 for sure in

Consider the following project: Pay $30,000 now and receive $38,000 for sure in the future. The only uncertainty is that you do not know when you will receive the $38,000. It will either be in one year or in two years (with a 50% probability of each). Is this a good project? What is the NPV? The discount rate is 12%.

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