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You are investigating a potential investment project for your firm. For an investment of $50,000 today, the project will generate a positive cash flow one
You are investigating a potential investment project for your firm. For an investment of $50,000 today, the project will generate a positive cash flow one year from now in the amount of $57,500. No other cash flows will be generated by the project. The relevant interest rate for this analysis is 6%. What is the NPV of this opportunity?
$7,500
$300
$4,245
$3,255
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