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Bella plans to open a new outdoor recreation store in Forks. She expects to make $38,000 in year 1; $46,000 in year 2; $59,000 in
Bella plans to open a new outdoor recreation store in Forks. She expects to make $38,000 in year 1; $46,000 in year 2; $59,000 in year 3 and $267,000 in year 4 (price to sell it included). Due to special circumstances she will have to leave after 4 years. If the appropriate rate for an investment of this risk is 18%, how much is the most she should pay? If it cost $200,000, should Bella buy it? If Bella pays $200,000, what rate of return will she receive
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