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Should the firm make this investment

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Reference no: EM133480638

A firm can invest $6 million today in order to receive two payments. The first payment, $900,000, occurs exactly 2 years from today; the second payment, $8 million, occurs exactly 5 years from today.

QUESTION

Should the firm make this investment? Answer YES or NO, and support your answer using the NET PRESENT VALUE criterion and a discount rate of 10%.

Reference no: EM133480638

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