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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.
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 return method?
Group of answer choices
No, the project is not worth the investment
Additional information is needed to make a decision
Yes, the project is worth the investment
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