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Question 1 Your company has identified a potentially profitable investment opportunity. An initial investment of 6,000 is required to undertake the project. The project is

Question 1

Your company has identified a potentially profitable investment opportunity. An initial investment of 6,000 is required to undertake the project. The project is expected to generate a cash flow of 8,000 at the end of its one-year life span. The company uses a 7% required rate of return to value similar projects. Calculate the net present value of this project.

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