Determine whether to invest in a project


Problem:

A project costs $19,000 and promises the following cash flows:

Year 1 $12,500
Year 2 $ 6,000
Year 3 $ 3,000

The appropriate discount rate is 15% per year. Should you invest in this project?

Solve the problem and write a 100-200 word response explaining the results you obtained for the selected question.

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Finance Basics: Determine whether to invest in a project
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