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Problem: A project initially costs $10,600 to get started. The project will produce cash inflows of $1,750 a year for four years. In the last year of the project, year 5, the project will be closed and as a result should produce a cash inflow of $8,500 at the end of year 5. What is the net present value of this project if the required rate of return is 13.75%? Support your statements with examples.

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