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Little Giant is building a manufacturing plant that will require a cash outlay of $1,000,000 for the initial purchase of a building, $250,000 for remodeling

Little Giant is building a manufacturing plant that will require a cash outlay of $1,000,000 for the initial purchase of a building, $250,000 for remodeling the first year, and $100,000 for new equipment in the second year. If the firms cost of capital is 14 percent, what is the present value of the net investment at time 0?

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