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Problem 3 (25%): You are given the following cash flow profile for an investment opportunity to develop an offshore gas field. Year 0 1 Cash
Problem 3 (25%): You are given the following cash flow profile for an investment opportunity to develop an offshore gas field. Year 0 1 Cash Flow -$750,000 $230,000 $190,000 -$230,000 -$200,000 $0 2 3 4 5 1) Calculate the growth rate of return. Assume the capital cost of the company is 10%. 2) Is this a good investment opportunity? Why
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