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A company is considering making an investment of SEK 5,000,000. Economic life is 3 years and the payment surpluses are SEK 2,000 thousand per year

A company is considering making an investment of SEK 5,000,000. Economic life is 3 years and the payment surpluses are SEK 2,000 thousand per year during years 1-3. Discount rate 15%.

Q: There is no residual value in the original information. Let's say that the company is uncertain about how large the residual value is. What is the minimum residual value in year 3 that is required for the investment to be profitable at a discount rate of 15%? Calculate and enter the residual value.

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