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You have an opportunity to invest in a business that will pay $200,000 in the first year, $400,000 in second year, $600,000 in the third
You have an opportunity to invest in a business that will pay $200,000 in the first year, $400,000 in second year, $600,000 in the third year and $800,000 in the fourth year. You can earn 12% per year compounded annually on an investment in a mutual fund that has similar risk. If it costs 1.2 million to start the business should you invest?
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