Question: You are evaluating a project that will provide its first cash flow of $ 8 0 , 0 0 0 in one year. The cash

You are evaluating a project that will provide its first cash flow of $80,000 in one year.
The cash flow is expected to grow by 3% annually for the foreseeable future. Considering its
degree of risk, you think a discount rate of 10% is appropriate. The project needs an initial
investment of $1,200,000. What would you do?
  

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