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Generic Motors Corporation is planning to invest $250,000 in year zero (today) in new equipment. This investment is expected to generate net cash flows of
Generic Motors Corporation is planning to invest $250,000 in year zero (today) in new equipment. This investment is expected to generate net cash flows of $100,000 a year for the next 4 years (years 1-4). The salvage value after 4 years is zero. The discount rate (cost of capital) is 20% a year.
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