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Harrison Industries is undertaking a capital project. The project requires an initial investment of CAD 250,000 and is expected to generate CAD 65,000 in cash

Harrison Industries is undertaking a capital project. The project requires an initial investment of CAD 250,000 and is expected to generate CAD 65,000 in cash inflows that will grow at 5.0% over the projects five-year life. The interest rate is 6.0%, compounded annually.

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  1. Should Harrison undertake this project?

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