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Your new potential business requires an initial investment of $200,000. Estimated return on the new business will be $60,000 starting in year 1 , and
Your new potential business requires an initial investment of $200,000. Estimated return on the new business will be $60,000 starting in year 1 , and will last for four years total (i.e. the last payment will be in year 4). What is the NPV of your business if your cost of capital is 10% ? What is the IRR? Should you undertake this business
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