What is the return expected on investment measured

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Consider the following investment cash flowsYear Cash flow0 -1,0001 2502 4003 5004 600 5 600

a. What is the return expected on this investment measured in dollar terms if the opportunity cost rate is 10 percent?

b. Provide an explanation, in economic terms, of your answer.

c. What is the return on this investment measured in percentage terms?

d. Should this investment be made?

Reference no: EM132654623

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