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Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $40,000 at the end of each

Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $40,000

at the end of each of the next 3 years. The opportunity requires an initial investment of $10,000

plus an additional investment at the end of the second year of $50,000.

What is the NPV of this opportunity if the interest rate is 8% per year? Should Marian take it?

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