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Problem 22-18 2 3 A risky $410,000 investment is expected to generate the following cash flows: Year $ 124,600 $176,430 $167,878 $150,000 a. If the

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Problem 22-18 2 3 A risky $410,000 investment is expected to generate the following cash flows: Year $ 124,600 $176,430 $167,878 $150,000 a. If the firm's cost of capital is 8 percent, should the investment be made? Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar NPV: The investment would be made b. An alternative use for the $410,000 is a four-year US Treasury bond that pays $24,600 annually and repays the 5410,000 at maturity Management belleves that the cash flows from the risky investment are equivalent to only 60 percent of the certain investment, which pays 6 percent. Should the Investment be made? Use Appendix B to answer the question. Do not round other intermediate calculations. Use a minut sign to enter a negative value, Ir any, Round your answer to the nearest dollar NPV: 5 The investment should not be made

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