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A firm is considering a three-year expansion project that will require an initial investment of...

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Finance

A firm is considering a three-year expansion project that will require an initial investment of $2,190,000. The project will require the firm to invest an additional $50,000 into inventory. The project will last three years and will generate additional operating cash flows of $850,000 per year.

What is the NPV of this project if the firms WACC is 7%?

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