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QUESTION 3 You are evaluating an investment opportunity that requires a $5 million dollar initial investment and annual O&M costs of $250,000. Revenues are expected

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QUESTION 3 You are evaluating an investment opportunity that requires a $5 million dollar initial investment and annual O&M costs of $250,000. Revenues are expected to be $1 million dollars at the end of the first year, but decline by $50,000 per year for the next 19 years. At the end of year 20, you plan to close the operation and sell the machinery for scrap for $150,000 Assume a MARR of 4% a) When you draw a cash flow diagram, what is the net value (.e., sum) of the cash flows that occur at year 5? b) When you draw a cash flow diagram, what is the net value (1.0., sum) of the cash flows that occur at year 207 c) What is the PW value of all cash flows described in this problem? d) Is this a "good" investment based on the economic analysis - Yes or No

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