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16. The Boddie Group will invest $80,000 in a temporary project that will generate the following cash inflows for the next three years. Year Cash
16. The Boddie Group will invest $80,000 in a temporary project that will generate the following cash inflows for the next three years.
| Year | Cash Flow |
| 1 | 25000 |
| 2 | 35000 |
| 3 | 50000 |
The firm will also be required to spend $7,500 to close down the project at the end of the three years. If the cost of capital is 10 percent, should the investment be undertaken (8 points)?
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