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Excel file of question Southeast Clinic is assessing an investment with the following budgeted cash flow stream: Year Cash Flow 0 (300,000) 1 25,000 2

Excel file of question

Southeast Clinic is assessing an investment with the following budgeted cash flow stream:
Year Cash Flow
0 (300,000)
1 25,000
2 50,000
3 75,000
4 100,000
5 125,000
a. What is the expected return on this investment measured in dollar terms if the opportunity cost rate is 7%? (2 points)
b. What is the return expected on this investment measured in percentage terms? (2 points)
c. Should this investment be made? Explain your answer.(4 points)

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