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PUML5) present time (t=0), the firm is an to invest $120,000 followed by 3 A manufacturing firm is considering the following investment; At the present

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PUML5) present time (t=0), the firm is an to invest $120,000 followed by 3 A manufacturing firm is considering the following investment; At the present time planning to invest $100,000. The following year (year 1) they plan to invest $120,000 additional end of year investment amounts that would increase by $20, year investment amounts that would increase by $20,000 per year starting in year through end of year 4. Starting at the end of year 5, the prior investme year 4. Starting at the end of year 5, the prior investments should yield a positive back to the firm of $150,000, and increase by 6.5% per year after. This positive cash flow firm will continue until the end of year 11. If the anticipated interest rate is 12.50% compe quarterly, determine the present worth of this entire investment at Po (t=0). Should this investme undertaken? Why or why not? arter. This positive cash flow back to the a) Draw the cash flow diagram for this investment. b) Determine the present worth of this initial investment at Po. Should this investment be undertaker Why or why not

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