Determine cash flow for investment evaluation purposes

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Reference no: EM131990062

Assume that a firm has a cost of money of 0.15. It is considering an investment with the following cash flows:

Time Cash flow

0: -27,000,000

1: 12,000,000

2: 11,520,000

3: 15,552,000

Should the investment be accepted?

The following events are assumed to take place at time 1. Determine the cash flow for investment evaluation purposes. The tax rate is 0.35.

Reference no: EM131990062

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