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4) A new project has the following predicted profits. The initial investment is $3,000,000. (10) Year Revenue 1 $200,000 2 $400,000 3 $600,000 4 $800,000
4) A new project has the following predicted profits. The initial investment is $3,000,000. (10)
Year Revenue
1 $200,000
2 $400,000
3 $600,000
4 $800,000
5 $1,200,000
6 $1,200,000
7 $1,400,000
8 $1,600,000
a) Determine the Rate of Return for the project.
b) If your companys MARR is 12%, should you invest?
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