Question: A firm is considering a three - year expansion project that will require an initial investment of $ 2 , 0 0 0 , 0

A firm is considering a three-year expansion project that will require an initial investment of $2,000,000. The project will require the firm to invest an additional $80,000 into inventory. The project will last three years and will generate additional operating cash flows of $760,000 per year.
What is the NPV of this project if the firm's WACC is 7%?

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