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#5. A rm is considering purchasing a factory for $1 million. The factory will yield a positive cash ow of $200,000 at date 1, $300,000

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#5. A rm is considering purchasing a factory for $1 million. The factory will yield a positive cash ow of $200,000 at date 1, $300,000 at date 2, and then will be sold for $900,000 at date 3. The appropriate interest rate is 12%. Should the rm purchase the factory

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