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The Westerfield Corporation is considering a project with the following cash flows: Time 0: Purchase machinery for $3000 Time 1: Buy inventory $2100 Time 2:

The Westerfield Corporation is considering a project with the following cash flows:

Time 0: Purchase machinery for $3000

Time 1: Buy inventory $2100

Time 2: Sales (net of expenses) $4000

Time 3: Sales (net of expenses) $4000

Time 4: Clean up costs: $900

Westerfield's discount rate is 8.5%.

What is the NPV of the project?

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