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You have been assigned to evaluate a project for your firm that requires an initial investment of $200,000, is expected to last for 10 years,
You have been assigned to evaluate a project for your firm that requires an initial investment of $200,000, is expected to last for 10 years, and is expected to produce after-tax net cash flows of $44,503 per year. If your firm's required rate of return is 14 percent, should the project be accepted? What is the NPV of the project?
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