What is the net present value of the project

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Reference no: EM131285209

A project with an initial cost of $600,000 will generate no returns in the first two years of operation and returns of $300,000 per year in Years 3, 4, and 5. If taxes can be ignored and the required rate of return is 10%, what is the net present value of the project (pick the closest answer)?

A. $146,070

B. $200,000

C. ($55,925)

D. $16,560

Reference no: EM131285209

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