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On your first day at work, Paul Han, the Executive Director for the conglomerates high-end health juice business, gave you a choice of working on

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On your first day at work, Paul Han, the Executive Director for the conglomerates high-end health juice business, gave you a choice of working on one of the three subdivisions that report to him. The teams are divided according to the three major types of capital investment project classifications Han sees that you have a good understanding of revenue enhancing projects and wants you to analyse the potential of opening a premium juice bar on Orchard Road. It requires an initial investment of S750,000, and results in a cash flow of $225,000 each year for the next 4 years. The relevant discount rate is 5% On your first day at work, Paul Han, the Executive Director for the conglomerates high-end health juice business, gave you a choice of working on one of the three subdivisions that report to him. The teams are divided according to the three major types of capital investment project classifications Han sees that you have a good understanding of revenue enhancing projects and wants you to analyse the potential of opening a premium juice bar on Orchard Road. It requires an initial investment of S750,000, and results in a cash flow of $225,000 each year for the next 4 years. The relevant discount rate is 5%

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