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Mary invested $ 4 0 , 0 0 0 in a business project. This business pays her $ 1 2 , 0 0 0 at

Mary invested $40,000 in a business project. This business pays her $12,000 at the end of
each year for the next 5 years at which point she sells her business for $20,000. Prevailing
interest rate are currently 5%.
Q3.1 What is the net present value of the project
Q3.2 Is it worth investing in?

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