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Your Manager is looking to expand their business overseas. The expected cashflows of the project are given below. Cash flows year $6,000 2 33,600 4
Your Manager is looking to expand their business overseas. The expected cashflows of the project are given below. Cash flows year $6,000 2 33,600 4 99,000 4 The interest rate over the entire period of the investment is a nominal rate 9% p.a. compunded quarterly. If your manager can buy the investment at a price of $80,000 today, would you recommend that this is a good investment? Why or why not
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