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You have been offered the opportunity to invest in a short-term business venture. The business is expected to generate cash inflows over a period of
You have been offered the opportunity to invest in a short-term business venture. The business is expected to generate cash inflows over a period of three years being $900 in year 1, $1,800 in year 2 and $2.700 in year 3. The business adviser who is offering this investment to you says it will cost you $4,500 to invest today (year 0) which will give you a $900 profit over the three years. You want to make a 10%p., retum on your investment State whether you should investor not and explain why by demonstrating numerically the value of this investment opportunity Present you answer in a way similar to below you can create a 6 x 4 table to present your answer Period it) Cash Flow PVIF IPvc 10 1 2 3 NPV And state in one sentence whether you should invest or not by referring back to your calculation Edit View. Insert Format Tools Table 12pt Paragraph B 7 UA
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