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Suppose the cash flows for an investment project are: year 1: S-600 year 2: S200 year 3: S220 year 4: S400 The company will invest

Suppose the cash flows for an investment project are:

year 1: S-600

year 2: S200

year 3: S220

year 4: S400

The company will invest if the present value of the flows is positive.

should the company start the project

a) if the interest rate is 10 percent?

b) if the interest rate is sixteen percent?

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