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Suppose a government is planning a project that will cost $200dollars this year (year zero). In year five it will provide a return of $250.

Suppose a government is planning a project that will cost $200dollars this year (year zero). In year five it will provide a return of $250. If the discount rate is 5%, the net present discounted value of the project is (round to the nearest dollar) $ . Based on this value, should the government do the project?

If analysts think that 3%% is the more appropriate discount rate, should the government do the project?

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