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You are evaluating a 15-year investment that requires an initial expenditure of $1,000,000. The investment is not expected to generate any cash flows during the

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You are evaluating a 15-year investment that requires an initial expenditure of $1,000,000. The investment is not expected to generate any cash flows during the first five years. At the end of year six, the investment is expected to generate $200,000 of net cash inflow. The net cash inflow will grow by 5% per year thereafter, until and including the end of year 13 . Assuming that the discount rate is 10% per year, should you accept the investment or not? Show your work

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