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Should the investment be undertaken

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Problem 1: An investment promises to pay $10,000, $14,000, $16,000 and $20,000 at the end of the first, second, fourth and fifth year respectively. A cash injection of $8,000 is required at the end of the third year. The investment may be purchased for $50,000, which would have to be borrowed at an interest rate of 8%. Should this investment be undertaken?

Reference no: EM132960245

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