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2. Finally, let's assume you've been offered a business opportunity with an up-front capital cost of $250,000, which business is expected to need annual capital

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2. Finally, let's assume you've been offered a business opportunity with an up-front capital cost of $250,000, which business is expected to need annual capital infusions of $10,000 per year for the first three years, and will run at break even for two additional years before it begins to return a positive cash flow of $50,000 a year for the following five years. You believe you can sell this business for $350,000 at the end of 10 years and your opportunity cost ofcapital is 6%. a) Determine the business opportunity worth the price? (2 marks) b) Calculate both equation and calculator solutions to this problem (3marks) c) Explain the solution you've calculated and justify (2marks)

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