Morgages, loans, stock valuations and business investment decisions.

4. A proposed development would require an investment of $3 million at the beginning of the first year and a further investment of $3 million at the end of the first year. It is expected to yield annual year-end profits of \$1 million starting in year 2 . The development will be sustained for 10 years with an additional cost of \$1 million to close the development at the end of the last year of operations. Will the project provide the company with a rate of return exceeding its 10% cost of capital