Your company has decided to invest in a project that is expected to produce the following cash flows: $8,000 in year 1, $12,000 in year 2, and $10,000 in year 3 at which time it would be sold for $2,500. The project would require a $15,000 investment. What is the net present value of the project assuming an interest rate of 10%?
How do I calculate net present value in this problem?
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