1. Initial Investment = 350,000 *1 + 475000 *1+ 450000*0.5 =
1,050,000
NPV of Project = 350,000/(1+7%) + 475,000/(1+7%)2 +
450,000/(1+7%)3 + 450,000/(1+7%)4 -1,050,000
= 402,623
2. Option a and option b are correct.
Option c is not correct
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