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II. You are considering a new project that costs 2000m and you have estimated the following cash flows: Year 1: 1000m; Year 2: 700m; Year

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II. You are considering a new project that costs 2000m and you have estimated the following cash flows: Year 1: 1000m; Year 2: 700m; Year 3: 500m. If the discount rate is 8%, do you recommend the project? (4 marks)

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