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You are a strong advocate for a one - year investment project that would cost your firm $ 1 0 , 0 0 0 today
You are a strong advocate for a oneyear investment project that would cost your firm $ today but generate virtually certain earnings of $ at yearend. Your firm's financial group concurs that the investment is virtually riskfree, but nonetheless, your boss is concerned about the firm's cash flow problems. In fact, the problems are so severe that the firm's bank currently charges it percent on oneyear loans.
Using the concepts associated with the timevalue of money, provide a page paper with calculations to support the narrative you would use to convince your boss to undertake the project.
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