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Arrington Motors is considering a project that has a cost of $150,000. The first year cash flow is $12,000 (FCF1). It will grow at a
Arrington Motors is considering a project that has a cost of $150,000. The first year cash flow is $12,000 (FCF1). It will grow at a constant rate of 3%. The cost of capital is 12%. Calculate the net present value and the internal rate of return. Would you accept this project and why?
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