You have a project that costs $50,000 and will return $80,000 in 3 years. Your marginal capital

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You have a project that costs $50,000 and will return $80,000 in 3 years.

Your marginal capital gains tax rate on the $30,000 gain will be 37.5%.

Treasuries pay a rate of return of 8%per year; munis pay a rate of return of 3% per year.What is the NPV of your project?

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