Antonio wishes to evaluate a business opportunity that requires an initial investment of 70,000 and is expected

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Antonio wishes to evaluate a business opportunity that requires an initial investment of €70,000 and is expected to bring positive cash flows for five years. What minimum amount of annual cash inflow is needed if he has a 5% cost of capital? If the opportunity is expected to earn €15,000 per year over the five years, what is the IRR? Is the business opportunity acceptable?

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Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

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