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QUESTION 25 A risky $20,000 Investment is expected to generate cash flows of $11,000 in year 1, $12,000 in year 2 and $15,000 in year

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QUESTION 25 A risky $20,000 Investment is expected to generate cash flows of $11,000 in year 1, $12,000 in year 2 and $15,000 in year 3. The probability of recelving each cash inflow is 90, 80, and 70 percent, respectively, If the firm's cost of capital is 12 percent, should the investment be made? VO

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