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Suppose you are considering building a gas station with truck parking in the Waller area as a business venture. Initially the project will require an
Suppose you are considering building a gas station with truck parking in the Waller area as a business venture. Initially the project will require an capital investment of $300,000 but once the construction is over in a year is expected to generate the following cash flow over the next 5 years: Year 1: $85,000 Year 2: $95,000 Year 3: $100,000 Year 4: $100,000 Year 5: $100,000 If your required rate of return is 25% then based on IRR criteria, should you proceed with the project? No
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