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Stark Industries is considering an expansion project with cash flows of -$67,000, $28,000, $32,000, $38,000, and -$2,000 for years 0 through 4. Should the firm
Stark Industries is considering an expansion project with cash flows of -$67,000, $28,000, $32,000, $38,000, and -$2,000 for years 0 through 4. Should the firm proceed with the expansion based on the discounting approach to the modified internal rate of return if the discount rate is 14.5 percent? Why or why not?
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