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JT Engineering is considering a project with a $ 4 0 0 , 0 0 0 investment that will generate $ 6 4 0 ,

JT Engineering is considering a project with a $400,000 investment that will generate $640,000 net cash flows over five years. JT has calculated the NPV of this investment to be $61,412 at a 12% discount rate. Unfortunately, this project is riskier than most of JTs other projects, which the company did not take into consideration when completing their NPV analysis. What error did JT make as a result and what impact did it have on the NPV?

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