Should you undertake project if estimated cost of capital

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Reference no: EM131569536

You have noticed a run-down office building and decide to buy it now for $420,000, investing $300,000 more in renovations over the following year. You expect to offer the building for sale the following year, selling it to the highest bidder for an estimated $910,000. Should you undertake the project if your estimated cost of capital is 12%?

Reference no: EM131569536

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