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Timco can generate EPS of $4 per year forever by maintaining current operations. Tim has an investment opportunity for the firm that he expects will

Timco can generate EPS of $4 per year forever by maintaining current operations. Tim has an investment opportunity for the firm that he expects will generate a 12% return. He would have to reinvest 25% of his earnings. Shareholders need to earn 14%. Should Timco invest?

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