A new capital investment that will cost $2.5 million and will generate perpetual net cash flows of

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A new capital investment that will cost $2.5 million and will generate perpetual net cash flows of $400,000 a year. Investors could expect to earn 8 percent elsewhere while taking the same risk. Will this investment generate an economic profit?


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Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

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