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The project FIRE will generate cash inflow of $5,000 at the end of year 1 and $4,000 at the beginning of year 4. It costs
The project FIRE will generate cash inflow of $5,000 at the end of year 1 and $4,000 at the beginning of year 4. It costs $3,000 today. If your cost of capital is 12%, then what is the sum of present values of future cash inflows of this project? (Hint: Refer to your class notes. You need to compute value of STEP 1.)
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