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Question #2 (3 marks) Investor A intends to invest $450,000 in a new business. The financial projections show that during the first year of operations

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Question #2 (3 marks) Investor A intends to invest $450,000 in a new business. The financial projections show that during the first year of operations the business will generate $54,000 in profit for the year. In order to finance the investment, Investor A has applied for a business loan with an interest rate of 10% Required: 1.) Calculate the expected return on assets. (state as a percentage) 2.) State the cost of financing, (state as a percentage) 3.) Should Investor A invest in the new business? Why or why not

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