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Net returns from an investment are estimated to be $13,000 per year for 12 years. The investment involves an immediate outlay of $50,000 and a
Net returns from an investment are estimated to be $13,000 per year for 12 years. The investment involves an immediate outlay of $50,000 and a further outlay of $30,000 after 6 years. The investments are estimated to have a residual value of $10,000 after 12 years. Using the net present value criterion, determine if the project should be undertaken if the expected return is 20%.
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