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Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $36000 at the end of each
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $36000 at the end of each of the next 3 years. The opportunity requires an initial investment of 9000 plus an additional investment at the end of the second year of 45000. What is the NPV of this opportunity if the interest rate is 7% per year? Should Marian take it?
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