Question: A project initially costs $ 4 0 , 5 0 0 and will not produce any cash flows for the first two years. Starting in

A project initially costs $40,500 and will not produce any cash flows for the first two years. Starting in Year 3, it will produce cash flows of $34,500 per year for two years. Year 5 cash flow will be zero. In Year 6, the project will end and should produce a final cash inflow of $12,000. The required rate of return is 18.5 percent. What is the NPV of this project?

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