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Please answer both parts Elona is considering the purchase of a social media platform twittly. Twittly is listed for sale at $900,000. Elona expect social
Please answer both parts
Elona is considering the purchase of a social media platform twittly. Twittly is listed for sale at $900,000. Elona expect social media platform to provide a net cash flows (cash inflows less cash outflows) of $110,000 each year over the next 20 years. Elona expects to sell the platform after 20 years for an estimated $909,000. What is the total present value of the net cash flows if Elona wants to make at least 12% annually on his investment? (Assume all cash flows occur at the end of each year.) QUESTION 2 Should Elona buy the social media platform? True False Step by Step Solution
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