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Alex plans to invest $1.5 million in a project today. The project is expected to generate cash flow of $200,000 per year after-tax in perpetuity.

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Alex plans to invest $1.5 million in a project today. The project is expected to generate cash flow of $200,000 per year after-tax in perpetuity. The cost of capital is 8%. Should Alex invest in the project based on the internal rate of retur method? (past CFA exam question) Additional information is needed to make a decision Yes, the project is worth the investment No, the project is not worth the investment

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