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3. Suppose you are considering investing, and the following up-front costs, cash inflows, and their respective constant growth rates known to you (see, the table

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3. Suppose you are considering investing, and the following up-front costs, cash inflows, and their respective constant growth rates known to you (see, the table below). Cash flow in the First Growth rate Cost of capital Investment Year (CF) $200,000 $40,000 3% 10% Projects Initial (r) A B $300,000 $70,000 4% 12% $800,000 $100,000 5% 14%

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