Business
Business, 07.04.2020 15:32, depinedainstcom

Assume a business is deciding whether to invest in a new project that is projected to generate profits of $90,000 each year for the next three years. The project start-up costs are $225,000.

a. If the business nominally earns 11 percent on its investments, should the business invest?
b. If the business normally earns 5 percent on its investments, should the business invest?

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