Compute the investment of the investment

Reference no: EM13198756

The InterCell Company wants to participate in the upcoming World Fair. To participate, the firm needs to spend $1 million in year zero to develop a showcase. The showcase will produce a cash flow of $2.5 million at the end of year one. Then, at the end of year two, $1.54 million must be expended to restore the land on which the showcase was presented to its original condition.
a. Compute the i* of the investment
b. Would you accept the investment at MARR=14%?

Reference no: EM13198756

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