Your firm is considering an investment that will cost


Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $300,000 in year 2 through 4, and $100,000 in year 5. The discount rate that your firm uses for projects of this 13.25%

What is the investment"s probability index?

 

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Finance Basics: Your firm is considering an investment that will cost
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