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Aaron Heath is secking part-time employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training

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Aaron Heath is secking part-time employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training services company that will offer tutorial services over the Internet. Aaron expects demand for the service to grow rapidly in the first two years of operation as customers learn about the availability of the internet assistance. Thereaftec he expects demand to stablize. The following table presents the expected cash flows: In addition to these cash flows, Aaron expects to pay $20,300 for the equipment. He also expects to pay $3,300 for a major overtiaul and updoting of the equipment at the end of the second year of operation. The equipment is expected to hove a $2,000 salvage value and a four year useful life. Aaron desires to earn a rate of return of 10 percent. (PV of S1 and PVA of S1) (Use appropriate factor(s) from the tables provided.) Required a. Calculate the net present value of the investment opportunity (Negative amount should be indicated by a minus sign, Round Intermediate calculations and final answer to 2 decimal places.) b. Indicate whether the investment opportunity is expected to earn a return that is above or below the desired rate of roturn and whether it should be accepted

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