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2. While doing due diligence for the buy-side of an acquisition, you find that the target company has borrowed $500,000 at 10% for capital expenditure.

2. While doing due diligence for the buy-side of an acquisition, you find that the target company has borrowed $500,000 at 10% for capital expenditure. The investment is expected to return $200,000 at the end of each year, for three years. What can you tell the buyers about this transaction?

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