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Consider the following investment cash flows: Year Cash Flow 1 : (1,000) 2 : 350 3 : 200 4 : 400 5 : 500 6
Consider the following investment cash flows:
Year Cash Flow
1 : (1,000) 2 : 350 3 : 200 4 : 400 5 : 500 6 : 600
a. What is the return expected on this investment measured in dollar terms if the opportunity cost rate is 8 percent? b. Provide an explanation, in economic terms, of your answer. c. What is the return on this investment measured in percentage terms? d. Should this investment be made? Explain your answer. please do not post is as a picture so I can edit and fix what is necessary
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