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10. (5 points) A car rental company wants to add 1000 new cars to its fleet. Each new car costs $55,000. Each will bring a

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10. (5 points) A car rental company wants to add 1000 new cars to its fleet. Each new car costs $55,000. Each will bring a revenue of $25 000 per year for two years. At the end of the second year, each will be sold for $25 000. If the interest rate facing this firm is 10 percent, should it purchase these cars? If yes, what is the net present value of this investment

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