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Suppose an investor regards $100,000 with certainty as equivalent to the expected risky return of $400,000 per year for the next five years. The initial

Suppose an investor regards $100,000 with certainty as equivalent to the expected risky return of $400,000 per year for the next five years. The initial cost outlay for the project is $300,000, and the risk-free discount rate is 10 percent. Find the net present value of the investment project.

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