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Question 7 - The introduction of a new product will require expenditures of $500,000 today and $150,000 in one year. The product will then produce
Question 7 - The introduction of a new product will require expenditures of $500,000 today and $150,000 in one year. The product will then produce profits of $225,000 for the next five years. Should the firm proceed with the production of the new product if the investment requires an annual rate of return of 10%?
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