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Question(s) / Instruction(s):

 A proposed project will cost $600,000 and will provide returns of $150,000 in Year 1, $300,000 in Year 2, and $500,000 in Year 3. There will not be any cash flows associated with the project after Year 3. If taxes are ignored, and the company's hurdle rate is 15%, what is the net present value of the project?

a)            $86,020

b)            $23,013

c)            $66,373

d)            $50,000

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