Question: Please answer with detailed working and explanation : The following cash flows result from a potential construction contract for Erstwhile Engineering. 1. Receipts of $600000

Please answer with detailed working and explanation :

The following cash flows result from a potential construction contract for Erstwhile Engineering. 1. Receipts of $600000 at the start of the contract and $900,000 at the end of the fourth year. 2. Expenditures at the end of the rst year 0199500000 and at the end of the second year of 513100.000. 3. A net cash flow of zero at the end of the third year. Using an appropriate rate of return method. for a MARE of 25 percent. should Erstwhile Engineering accept this project? Erstwhite Engineering |:| accept the project because the rate of return is 1 percent. which is |:| the MARR

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