Question: ABC Corporation is considering a new project with an initial cost of $50,000. The project is expected to generate cash inflows of $10,000 per year

ABC Corporation is considering a new project with an initial cost of $50,000. The project is expected to generate cash inflows of $10,000 per year for 7 years. The cost of capital is 12%. What is the net present value (NPV) of the project? Should the company accept the project? Show your calculations.

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