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Beach or Bust, LLC is thinking of investing in a new reservation system that will cost $5.3 million today. It is expected to generate annual
Beach or Bust, LLC is thinking of investing in a new reservation system that will cost $5.3 million today. It is expected to generate annual cash flows of $1.6 million in 2020, growing 10% in 2021, 8% in 2022, and 7% per year for each of the next 2 years. If the company's cost of capital is 15%, what is the net present value?
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