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#31 It’s time to build a new call center. It looks like the center will cost...

#31 It’s time to build a new call center. It looks like the center will cost $10.5 million to build and generate cash flows of $2 million the first year, $3 million per year for the next two years, $4 million per year for the following two years, and $2 million in its final year of operation. If your required return is 12%, should you build the new center?

  • A. Yes

  • B. No

  • C. Not enough information to answer

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Answer #1

YES

22:50 LTE 4G .ll 53% Practice%20Q-A n. *** fx A B с D E F DISCOUN cash Year flows in millions T formula used in cell C cash f

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