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An entrepreneur would like to invest $200,000 in a project that would generate, for each year during the next ten years: (a) $140,000 in gross
An entrepreneur would like to invest $200,000 in a project that would generate, for each year during the next ten years: (a) $140,000 in gross profit, (b) $90,000 in profit before taxes, and (c) $40,000 in net profit for the year. The accountant informed the entrepreneur that the statement of income includes depreciation of $10,000. The investment in working capital during the first year of operation would be $60,000. During the last year, she would want to sell the business for $500,000. Project's annual cash flows:
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