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Q 1 2 : ( Growing Annuity ) A publisher is trying to decide whether to revise a popular book. The company has estimated that
Q: Growing Annuity A publisher is trying to decide whether to revise a popular book. The company has estimated that the revision will cost $ Cash flows from increased sales will be $ the first year. These cash flows will increase by percent per year. The book will go out of print five years from now. Assume that revenues are received at the end of each year. If the company requires a return of percent, should it accept the revision?
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