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Corporate Investment 7. Jacob's Manufacturing is considering an investment in a new machine that costs $25,000 (today). The machine is expected to produce the following

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Corporate Investment 7. Jacob's Manufacturing is considering an investment in a new machine that costs $25,000 (today). The machine is expected to produce the following cash flows over the next five years (at the end of each year): Year 1 2 3 Cash flow $5,000 $6,000 $7,500 4 5 $7,500 $9,500 What is the breakeven rate of return on this investment? (where cost equals PV of future cash flows) 8. Suppose the investment in #7 had an opportunity cost of 16%. Should the firm undertake the investment

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