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UMD Corp., is evaluating a project that will generate $4,000 in operating cash flow in year 1, $0 in year 2, and $25,000 in year

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UMD Corp., is evaluating a project that will generate $4,000 in operating cash flow in year 1, $0 in year 2, and $25,000 in year 3. The project requires an upfront investment of $20,500 and UMD's cost of capital is 15 percent. Should UMD accept the project and make the investment? Yes O No Yes, but only if UMD can raise its level of investment Yes, but only if UMD can raise its cost of capital Yes, the project is at breakeven

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