The project will not produce any cash flows

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Smith Inc. is considering a project with an initial cost of $1.07 million. The project will not produce any cash flows for the first two years. Starting in year 3, the project will produce cash inflows of $667,000 a year for 6 years. This project is risky, so the firm has assigned it a discount rate of 18.9 percent. What is the net present value?

Reference no: EM13972138

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