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Q 1 ) A small company purchased now for R . O . 2 5 , 0 0 0 will lose R . O .
Q A small company purchased now for R O will lose R O each year the first four years An additional R O invested in the company during the fourth year will result in a profit of R O each year from the fifth year through the fiftern year. At the end of years, the company can be sold for RO MARR
a Draw a cash flow diagram for the investment
b Calculate the ERR when
c Is this investment feasible?
a
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