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You are a strong advocate for a one-year investment project that would cost your firm $10,000 today but generate virtually certain earnings of $15,000 at
You are a strong advocate for a one-year investment project that would cost your firm $10,000 today but generate virtually certain earnings of $15,000 at year-end. Your firm's financial group concurs that the investment is virtually risk-free, 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 20 percent on one-year loans.
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