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Question 3 You are evaluating a 10-year investment that requires an initial expenditure of $2,000,000. The investment is not expected to generate any cash flows

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Question 3 You are evaluating a 10-year investment that requires an initial expenditure of $2,000,000. The investment is not expected to generate any cash flows during the first three years. At the end of year four, the investment is expected to generate $500,000 of net cash inflow. The net cash inflow will grow by 3% per year thereafter, until and including the end of the 10th year. Assuming that the discount rate is 15% per year, should you accept the investment or not? Show your work

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