Question: Using NPV, should you invest in a project where the initial cash outflow is $25,000 and the cash inflow in the first year is $2,000

Using NPV, should you invest in a project where the initial cash outflow is $25,000 and the cash inflow in the first year is $2,000 and “grows” at a rate of 2 percent thereafter? Assume cost of capital is 10 percent.

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