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Julie and Bill Golden intend to expand their hog operation. The expansion has anticipated cash flows in years one through five of $6,500, $7,500, $8.000,

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Julie and Bill Golden intend to expand their hog operation. The expansion has anticipated cash flows in years one through five of $6,500, $7,500, $8.000, $8,000, and $8,000, respectively and costs $30,000 up front. They expect inflation to be a consistent 6% per year and have a time preference rate of 2%. Is it be profitable to expand Julie and Bill Razorback's hog operation? O 1) NO, VO = $-2,669 and therefore is not profitable O 2) Yes, VO = $-2,669 and therefore is profitable 3) NO. VO = $26 and therefore is not profitable 4) Yes. VO = $26 and therefore is profitable

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