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he following investments are available. Their free cash flows for each period are shown, and the appropriate discount rate is 12% per annum. Investment Yr0

he following investments are available. Their free cash flows for each period are shown, and the appropriate discount rate is 12% per annum.

Investment Yr0 Yr1 Yr2 Yr3

1 (1500) 845 670 500

2 (2600) 105 200 3500

Using the NPV technique, which investment(s) should be undertaken?

corporate finance

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