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You are offered a business opportunity that requires an initial investment (cost) today of $37,000. The business will produce revenues of $10,000 three years from
You are offered a business opportunity that requires an initial investment (cost) today of $37,000. The business will produce revenues of $10,000 three years from today, $10,000 four years from today, and $25,000 five years from today. Assume that the interest rate is constant at 5% per year. Would you accept this business opportunity?
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