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The Greasy Spoon Restaurant is considering a project with an initial cost of $525,000. The project will not produce any cash flows for the first
The Greasy Spoon Restaurant is considering a project with an initial cost of
$525,000. The project will not produce any cash flows for the first three years. Starting in year 4, the project will produce net cash flows of $721,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 16 percent.
What is the project's net present value
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