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DISCOUNT CASH FLOW AND NPV [3 POINTS Your firm is trying to decide whether to invest in a project opportunity based on the following information.

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DISCOUNT CASH FLOW AND NPV [3 POINTS Your firm is trying to decide whether to invest in a project opportunity based on the following information. The initial cash outlay will total $240,000 over two years. The firm expects to invest $200,000 immediately and the final $40,000 in one year's time. The company predicts that the project will generate a stream of earnings of $55,000, $105,000, $200,000, and $75,000 per year, respectively, starting in Year 2. The required rate of return is 11%. Should you invest in this project? Justify your answer. Show all your work by filling in the remaining cells. Year 1 Inflows Outflows Net Flow Discount Factor 1.0000 $0 $200 $200,000 $(200,000) $0 $40,000 $(40,000) $55,000 $105,000 $200,000 $75,000 Total $435,000 $240,000

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