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Your company proposes to buy an asset for $335. This investment is very safe. You would sell off the asset in three years for $400.
Your company proposes to buy an asset for $335. This investment is very safe. You would sell off the asset in three years for $400. You know you could invest the $335 elsewhere at 10 percent with very little risk. Evaluate the proposed investment by your company Is it a good investment? (3 marks)
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