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(3 points) You are considering a herd improvement that will cost $30,000 but yield year-end cash returns of $12,800, $13,750, and $14,650 in the following
(3 points) You are considering a herd improvement that will cost $30,000 but yield year-end cash returns of $12,800, $13,750, and $14,650 in the following three years. Assuming an opportunity cost of capital of 8.0%, would you make this investment? Briefly explain why or why not (be specific in your answers and use numerical information to support your decision).
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