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MGM Mirage is considering the construction of a casino in Spokane at a cost of $3 million. It anticipates cash flows from the new casino

MGM Mirage is considering the construction of a casino in Spokane at a cost of $3 million. It anticipates cash flows from the new casino of $800,000 annually over the next 10 years. Based on its required rate of return of 18%, should MGM Mirage build the casino? Justify your answer.

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