Problem
An investor is offered a project that needs an initial investment of $240,000. The investment produces a net profit of $20,000 in the first year increasing by $10,000 each year for five years after that (a total project duration of six years), with a final payment of $15,000 at the termination (end of the sixth year). If the inflation rate is assumed to be a constant for the next 10 years at 4.545% per year, and the prevailing market interest rate is estimated to be 15% per year for the duration of the project, should he invest in this project? Ignore tax.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.