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Question 6 Suppose you are asked to decide whether a new project should be launched. Based on the projected sales and costs, we expect that
Question 6
Suppose you are asked to decide whether a new project should be launched. Based on the projected sales and costs, we expect that the cash flow over the five-year life of the project will be $2,000 in the first two years, $4,000 in the next two, and $5,000 in the last year. It will cost about $10,000 to begin the project. We use a 10 percent discount rate to evaluate new project. Explain your decision in this case?
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