A business undertakes high-risk investments and requires a minimum expected rate of return of $17 \%$ pa on its investments. A proposed capital investment has the following expected cash flows:

State, on financial grounds alone, whether this project should go ahead. Note: you should calculate the NPV of the project at a cost of capital of $15 \%$ and $20 \%$.

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Year 0 $ (50,000) 1 18,000 2 25,000 3 20,000 4 10,000