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1. The firm has an investment opportunity. This project will generate cash flows $110 at t, $121 at t2, and $266.2 at tz. The initial
1. The firm has an investment opportunity. This project will generate cash flows $110 at t, $121 at t2, and $266.2 at tz. The initial investment cost is $400. The firm has to borrow the initial investment funds from the bank, who quotes an interest rate 9%. Should the firm borrow the fund and invest in the project? If the bank quotes an interest rate 11%, will your answer change? Why
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