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# The following are the new values to the data that you have been estimating up to this point: funds from bank at 3%.

The following are the new values to the data that you have been estimating up to this point:

• funds from bank at 3%.
• initial cost \$105,000
• gross revenues from the project will be \$25,000 for year 1, then \$27,000 for years 2 - 4. Year 5 will be \$23,000.
• The expected annual cash outflows (current project costs) are estimated at being \$13,000 for the first year, then \$12,000 for years 2, 3, and 4. The final year costs will be \$10,000.
• After 5 years the equipment will stop working and will be worthless.
• The discount rate continues to be 6%.

Calculate the net present value, and determine whether the project is worth doing from a financial perspective.

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