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Your company has been presented with an opportunity to invest in a project that is summarized as follows: Investment required: $ 60,000,000 Annual gross income:

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Your company has been presented with an opportunity to invest in a project that is summarized as follows: Investment required: $ 60,000,000 Annual gross income: $ 14. 000,000 Annual operating Costs: 5, 500,000 Salvage Value after 10 years: 0 The project is expected to operate as shown for 10 years. If your management requires a return of 10% on its investments before taxes, would you recommendthis project based on rate of return analysis

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