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A certain investment proposal requires an initial outlay of $450,000, and has an expected useful life of 6 years, with an annual cash inflow of
A certain investment proposal requires an initial outlay of $450,000, and has an expected useful life of 6 years, with an annual cash inflow of $90,000 received at the end of each year. The company uses the straight-line method of depreciation. Ignore income taxes. The company has a 8% incremental cost of borrowing.
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