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1. A project with an initial investment of $100,000 has the following annual net cash flows: Year 1 2 3 4 Cash flow 0 10000
1. A project with an initial investment of $100,000 has the following annual net cash flows: Year 1 2 3 4 Cash flow 0 10000 40000 55000 The residual value of the assets at the end of the project is $11,000 and the required rate of return is 5%. Is this a worthwhile project? Justify your answer.
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