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Assume that you have an investment opportunity that will produce cash flows (with certainty) following the pattern below. The investment requires a $500 investment today.

Assume that you have an investment opportunity that will produce cash flows (with certainty) following the pattern below. The investment requires a $500 investment today. Year Cash Flow 1 $600 2 $300 3 $300 4 $200 5 -1000 a. (5 points) Use Excel to graph the NPV of these cash flows as a function of the discount rate. b. (5 points) Would you invest in this project if the opportunity cost were 20%? Explain why in a sentence or two.

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