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Harper Hospital is planning to construct a new pharmacy and gift shop in order to better serve patients and visitors to the hospital. The construction

Harper Hospital is planning to construct a new pharmacy and gift shop in order to better serve patients and visitors to the hospital. The construction will cost $275,000 and is expected to last four years without the need for any additional renovations or maintenance. The new pharmacy and gift shop will generate $40,000 in revenues in year one, and that amount is projected to increase by 2.5% each year thereafter. Assuming a discount rate of 5.5%, will the hospital make money or lose money on the new pharmacy and gift shop?

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