Question: A contract is estimated to yield net annual returns for $ 14000 for years. To secure the contract, an immediate outlay of $70000 is required.

A contract is estimated to yield net annual returns for $ 14000 for years. To secure the contract, an immediate outlay of $70000 is required. Interest is 13 % compounded . Calculate the net present value (NPV) of the contract and determine whether the project should be accepted or rejected according to the net present value criterion

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