Its initial investment as salvage value

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Reference no: EM132014427

The Northern Investment Group is considering investing $2 million in a new shopping plaza in Atlanta. The company has estimated that the shopping plaza, once built, will generate $450,000 per year for 10 years. If the firm is looking for a return of 15% on its investment, is it worth undertaking? Assume that the shopping plaza will retain about 80% of its initial investment as salvage value.

Reference no: EM132014427

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