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Consider a project that costs $5000 and has an expected future cash flow of $1000 per year for 20 years. If we wait one year,

  1. Consider a project that costs $5000 and has an expected future cash flow of $1000 per year for 20 years. If we wait one year, the cost will increase to $5500 and the expected future cash flow will increase to $1200. If the required return is 13%, should we accept the project? If so, when should we begin?

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