Find the expected return of the project Your firm is considering a new project to facilitate automated
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Find the expected return of the project
Your firm is considering a new project to facilitate automated POS systems. The initial upfront costs will be $395,000. The project is expected to yield revenues of $75,000 year 1, $95,000 year 2, $150,000 years 3, 4, and 5. The current discount rate is 4.5% and is expected to be unchanged over the next 5 years. At the end of year 5 the project will be terminated. What is the expected return for this project and should this project be initiated?
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