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(20 points) An investment being considered by Siloam Spring Water Distributing requires an initial outlay of $1,000,000 and an additional outlay of $100,000 at the
(20 points) An investment being considered by Siloam Spring Water Distributing requires an initial outlay of $1,000,000 and an additional outlay of $100,000 at the end of five years. The investment will provide returns of $200,000 a year for the first 5 years and $300,000 a year for the next 5 years. The investment will have a salvage value of 5% of the original cost at the end of its ten-year life. Required return is 10%. Is this an attractive investment? Calculate the NPV
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