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Several companies, including Indigo River Recycling and Violet Sky Food, are considering project A, which is believed by all to have a level of risk

Several companies, including Indigo River Recycling and Violet Sky 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 Indigo River Recycling. Project A is a project that would require an initial investment of 4,748 dollars and then produce an expected cash flow of 7,766 dollars in 4 years. Project A has an internal rate of return of 13.09 percent. The weighted-average cost of capital for Indigo River Recycling is 10.84 percent and the weighted-average cost of capital for Violet Sky Food is 12.15 percent. What is the NPV that Violet Sky Food would compute for project A?

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