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Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,800 at the end of each
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,800 at the end of each of the next three years. The opportunity requires an initial investment of $1,450 plus an additional investment at the end of the second year of $7,250. What is the NPV of this opportunity if the cost of capital is 2.4% per year? Should Marian take it? What is the NPV of this opportunity if the cost of capital is 2.4% per year? The NPV of this opportunity is $. (Round to the nearest cent.)
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