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Bob is considering an expansion to the dining area. The expansion would have an initial cost of $150,000 and provide cash flows of $20,000 the

Bob is considering an expansion to the dining area. The expansion would have an initial cost of $150,000 and provide cash flows of $20,000 the first year, $40,000 the second, $60,000 the third, and $80,000 per year for the final two years. If his required return is 14%, should he do the expansion?

A. Yes

  • B. No

  • C. Not enough information

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