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Data Table Adorn Hair Design Studios would like to purchase another hair salon that is being sold in a neighboring town for $450,000. Assume cash
Data Table Adorn Hair Design Studios would like to purchase another hair salon that is being sold in a neighboring town for $450,000. Assume cash flows occur at the end of the year. Based on past volume of sales, Adorn estimates the net cash flows that would be generated by the salon: EEB (Click the icon to view the net cash flows.) After six years, Adorn can sell the salon for $310,000. Years Cash Flows 1-3 S 4 63,000 69,000 82,000 63,000 Requirement If the interest rate on this investment is 1 196, compounded annually, should Adorn purchase the salon? 6
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