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A project in Malaysia costs $5,000,000. Over the next 4 years, the project will generate total operating cash flows of $4,700,000, measured in todays dollars
A project in Malaysia costs $5,000,000. Over the next 4 years, the project will generate total operating cash flows of $4,700,000,
measured in today’s dollars using a required rate of return of 12 percent. Why or why not?
(1) Calculate the break-even salvage value of this project?
(2) Should the company go ahead with the project?
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