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A business owner is thinking of investing in an HR development program that will save his business an estimated $ 5 0 , 0 0

A business owner is thinking of investing in an HR development program that will save his business an estimated $50,000 in the first year on a before-tax basis. The savings will then grow at the rate of 3% per year indefinitely. The income tax rate in the country is equal to 20%. What is the maximum amount the owner would be willing to pay for the program upfront given that the corresponding required rate of return of 12%

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