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Question: Your company is looking at an investment that today costs $3,863 and returns after-tax cash flow exactly one year, two years, and three years from today, respectively, equal to $1,700 , $2,000 and $2,500 . The company intends to finance the investment at a rate of 13.6% and to repay the loan (principal and interest) with the investment cash flows as they occur. How much economic profit will the investment create?

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Basic Finance, Finance

Category:- Basic Finance
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