A firm estimates that it will receive cash flows from a new product of $25,000 in Year 1, $22,000 in Year 2, and $19,000 in Year 3. If a discount rate of 8% is assumed, what is the NPV of this product’s cash flows?
a. $71,280
b. $57,092
c. $66,000
d. NPV cannot be determined from the information given
b. $57,092
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