# Suppose that you undertook an investment project with the following estimated cash flows: At the end of year 3, you have received an offer to buy the project from another firm; what minimum price would be the fair price to

Suppose that you undertook an investment project with the following estimated cash flows:

At the end of year 3, you have received an offer to buy the project from another firm; what minimum price would be the fair price to ask? Here your required return on investment is 15%.

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## n 0 1 2 3 4 5 An -$152,000 42,400 53,400 52,500 62,500 33,000

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## At the end of year 3 you still need to recover 61 189 from your previous investment And you expect …View the full answer

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**5**Section: Problems

Problem: 26

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