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3. A shareholder invests $100,000 in a new risky project. The project's manager presents the business plan, indicating that the present value of all future
3. A shareholder invests $100,000 in a new risky project. The project's manager presents the business plan, indicating that the present value of all future expected Free Cash-Flow is $100,000. In response, the shareholder tells the manager: In this case, you are fired! According to your projections, the expected rate of return on the capital invested in project, and thus on my own capital as the equity holder, is zero!. Is the shareholder's claim correct? Explain using the following concepts: (a project's) PV, NPV, IRR, and discount rate
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