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Suppose a project requires a AED100,000 expenditure up front but has cash flows over the following four years that bring in AED50,000, AED40,000, AED30,000 and

  1. Suppose a project requires a AED100,000 expenditure up front but has cash flows over the following four years that bring in AED50,000, AED40,000, AED30,000 and AED20,000, respectively. (3 Points: 2 + 1)

  1. Calculate the present value of the future returns of the project if the interest rate is 10%?

  1. As a manager of the project, would you invest on this project? Explain.

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