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Q4. A financial institution offers an investment opportunity to you. If you invest $7,000 in a project today, you can receive $2,216 per year for
Q4. A financial institution offers an investment opportunity to you. If you invest $7,000 in a project today, you can receive $2,216 per year for four years. The first cash flow comes at the end of Year 2. What is the net present value of this project if the required rate of return is 12 percent? [3 marks]
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