Question: Global Tech has just allocated $300,000 for a project with an eight percent cost of capital. They expect the project to return $10,000 in the
Global Tech has just allocated $300,000 for a project with an eight percent cost of capital. They expect the project to return $10,000 in the first year, $25,000 in the second year, $90,000 in the third year, $130,000 in year four, and $150,000 in year five. What is the net present value of this investment, and should they do it?
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