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A security firm is offered $77,000 in three years for providing CCTV coverage of a property. The cost of providing this coverage to the security
A security firm is offered $77,000 in three years for providing CCTV coverage of a property. The cost of providing this coverage to the security firm is $62,000, payable now, and the interest rate is 10%. Should the firm take the contract? It does not matter whether the contract is taken or not Yes, since the present value of cash inflow is higher than the present value of cash outflow No, since the present value of cash inflow is lower than the present value of cash outflow
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