Beach control systems will invest 90000 in a temporary

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Beach Control Systems will invest $90,000 in a temporary project tat will generate the following cash inflows for the next three years.

Year         Cash Flow

1              $23,000

2                38,000

3                60,000

The firm will be required to spend $15,000 to close down the project at the end of three years. If the cost of capital is 10%, should the investment be undertaken? Use the present value method.

Reference no: EM13569683

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