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2. You read the classified ads in your newspaper and found a company for sale. The asking price was $400,000. However, you further read that

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2. You read the classified ads in your newspaper and found a company for sale. The asking price was $400,000. However, you further read that the company was in legal trouble with the government and would require you to spend approximately $250,000 (legal fee) after tax to bring the company "on l (or back to life). The company would be expected to generate after tax cash flows of $100-009 a year. 1oo With a required rate ofreturn of 12%, is it a good buy if (Please explain your answer with your calculations)

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