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Question(s) / Instruction(s):

A proposed project requires an initial cash outlay of $749,000 for equipment and an additional cash outlay of $48,500 in year one to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 16 percent? 

a)      -$41,209

b)      $128,612

c)       -$105,427

d)      $239,602

e)      $67,333

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