Question: ABC Corp.s management is considering a project that will provide the firm with cash inflows of $10,000 at the end of each of the next
ABC Corp.s management is considering a project that will provide the firm with cash inflows of $10,000 at the end of each of the next 5 years. Assuming a discount rate of 10%, what is the maximum amount they should be willing to invest in such a project? (They should ensure that the project does not result in reducing ABCs shareholders wealth).
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