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Several companies, including Green Forest Packaging and Red Royal Food, are considering project A, which is believed by all to have a level of risk

Several companies, including Green Forest Packaging and Red Royal Food, are considering project A, which is believed by all to have a level of risk that is equal to that of the average-risk project at Green Forest Packaging. Project A is a project that would require an initial investment of 4,959 dollars and then produce an expected cash flow of 9,029 dollars in 6 years. Project A has an internal rate of return of 10.5 percent. The weighted-average cost of capital for Green Forest Packaging is 9.59 percent and the weighted-average cost of capital for Red Royal Food is 11.44 percent. What is the NPV that Red Royal Food would compute for project A?

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