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Larkin Laminating, Inc. is considering an investment that will cost $357,000. The investment produces no cash flows for the first year. In the second year, the cash inflow is $57,000. This inflow will increase to $198,000 and then $218,000 for the following two years, respectively, before ceasing permanently. The firm requires a 11.5 percent rate of return and has a required discounted payback period of three years. Should the project be accepted? Why or why not?

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