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Equipment costs you $4,900,000 today. You forecast that it will help earn cash flows of $1,600,000 in year 1; $2,900,000 in year 2; and $1,800,000

Equipment costs you $4,900,000 today. You forecast that it will help earn cash flows of $1,600,000 in year 1; $2,900,000 in year 2; and $1,800,000 in year 3. If your discount rate is 12% and the cash flows occur at the end of each year, should you buy the equipment?

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