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5) Stella Inc. is considering an investment of 500,000 in a non-cunent asset expected to generate substantial cash inflows over the next five years.
5) Stella Inc. is considering an investment of 500,000 in a non-cunent asset expected to generate substantial cash inflows over the next five years. Unfortunately: the annual cash flows from this investment are uncertain, but the following probability distribution has been established. Annual Cash Flow so ooo 100 ooo 150,000 Prob a bility At the end of its five-year life, the asset is expected to sell for The cost of capital is _ Should the mvestment b e undertaken?
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