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You are considering another project, P2, from which you expect cash inflow of $65,000 for next 3 years. If your expected rate of return from
You are considering another project, P2, from which you expect cash inflow of $65,000 for next 3 years. If your expected rate of return from this project is 10%, what would be the maximum initial investment amount you would spend on the P2? If the investment requires more than the maximum initial amount you have calculated above, would you still consider investing? Why or why not?
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