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You have a third project that will cost 1425 to invest in today, will generate cash flows of 65, 85, 150, and 225 at the
You have a third project that will cost 1425 to invest in today, will generate cash flows of 65, 85, 150, and 225 at the end of each of the next four years, with cash flows continuing to grow at a constant rate of 2% starting with the fourth cash flow and continuing forever. If the discount rate is 14%, what is the NPV and should you accept the project based on the NPV?
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