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Marian Plunket owns her own business and is considering an investment. If she undertakes the investment it will pay $40,000 at the end of the
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment it will pay $40,000 at the end of the next 3 years. The opportunity requires an initial investment of $10,000 plus an additional investment at the end of the second year of $50,000. What is the NPV of this opportunity if the interest rate is 10% per year? Should Marian take it?
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