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Ally owns a chain of bakery stores. He is considering whether he should build a new store downtown. The expected rate of return is 15%
Ally owns a chain of bakery stores. He is considering whether he should build
a new store downtown. The expected rate of return is 15% per year, while the
cost of borrowing money to finance the project is 12% per year. Should Ally
proceed with this project? Provide justification to your answer.
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