Based on the investor expectations of earning at least 12%, should this projected below be completed?                                                                                                                        Year        0            1          2           3            4             5              6                                     Cash Flow (133,000) 37,000  42,750  44,000   46,500      82,500   77,000                                                                                                                                                                                         Please explain why or why not the company should move forward with this endeavor.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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Based on the investor expectations of earning at least 12%, should this projected below be completed?                                                                                                               

        Year        0            1          2           3            4             5              6                                    

Cash Flow (133,000) 37,000  42,750  44,000   46,500      82,500   77,000                          

                                                                                                                                     

                        Please explain why or why not the company should move forward with this endeavor.      

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