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Skywalker Inc., a major manufacturer of lightsabers, is considering opening a shop in Los Angeles. The management of Skywalker Inc. expects cash flows of $

Skywalker Inc., a major manufacturer of lightsabers, is considering opening a shop in Los Angeles. The management of Skywalker Inc. expects cash flows of $1,000 next year that grow at 5% per year indefinitely. If the going market rate is 8%, and it will cost $8,200 to set up the shop, should Skywalker Inc. pursue opening the Los Angeles shop? Please explain how to solve using a BA II calculator if possible and include the final answer.

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