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XYZ Company is considering an investment which will cost $500,000 initially. The investment will not produce any cash flows for the first 3 years.

 


XYZ Company is considering an investment which will cost $500,000 initially. The investment will not produce any cash flows for the first 3 years. Starting in year 4, the project will produce cash inflows of $500,000 a year for 3 years. What is the net present value if the rate of return is 22% ?

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