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The ESET Company's policy is to only take on projects that will realize an annual rate of return (interest of at least 10%. Based on
The ESET Company's policy is to only take on projects that will realize an annual rate of return (interest of at least 10%. Based on this decision criterion, should the company invest in the following project? Project 333 requires an initial investment of $10K, and annual additional investments of $1K for the first three years and $5K in year 4 growing each year by $2K for the next six years years 5 through 10). With these investments, the project is expected to produce a revenue stream of $5K every year for the first five years and then $10K for years 6 through 10. The cash-out income at the end of ten years will be an additional $25K
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