Considering an investment with the expected cash flows

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Your company is considering an investment with the following expected cash flows: Initial Investment = $407,596 Operating Cash Flows = $72,428 per year Terminal Cash Flow = $11,872. The company's WACC is 11% for similar risk projects. The proposed project would have an expected life of 9 years. Your boss asks you to do the analysis. You would tell your boss this proposed project ___ because ____.

Reference no: EM131559520

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