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Excel project: You are considering buying a food truck. Consider the following cash flows over a five-year period for the food truck. Should you make
Excel project:
You are considering buying a food truck. Consider the following cash flows over a five-year period for the food truck. Should you make the purchase given a required cost of capital for this investment of 15%? What would your annual return be?
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| -$180,000 | $25,000 | $65,000 | $75,000 | $50,000 | $40,000 |
What if the cash flows occur on the following dates? Should you purchase the food truck? What would your annual return be?
| Jul 10, 2020 | Jul 5, 2021 | Mar 12, 2022 | Aug 9, 2022 | Aug 9, 2023 | Sep 12, 2024 |
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