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The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years. Year Cash Inflow
The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years.
Year Cash Inflow
1 $15,000
2 25,000
3 40,000
The firm will also be required to spend $10,000 to close down the project at the end of the three years. If the cost of captial is 10 percent, should the investment be undertaken?
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