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(3 points) Baxter, Inc is considering an investment opportunity that requires an initial investment of $100,000 and will generate a risk-free cash flow of 150,000
(3 points) Baxter, Inc is considering an investment opportunity that requires an initial investment of $100,000 and will generate a risk-free cash flow of 150,000 in one year. Baxter has 1 million of debt due next year. Without the project value of Baxter's assets is expected to be $900,000 in one year. * Would Baxter pursue the project? Explain, perform necessary computations. b) What would be your answer to question a) if Baxter owed only $400,000
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