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A firm is considering an investment with an upfront cost of $100,000. The investment offers a cash inflow of $40,000 for a 4-year period. Given
A firm is considering an investment with an upfront cost of $100,000. The investment offers a cash inflow of $40,000 for a 4-year period. Given the firms cost of capital is 8%, calculate the net present value of the investment. Should the company invest in this project? Explain your reason(s).
With workings please
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