You have been given a chance to invest in a promotion plan. It requires an...
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Accounting
You have been given a chance to invest in a promotion plan. It requires an initial investment of $500,000 and aims to profit from the success of the movie AI World by making AI World costumes. The promoter promises to give investors $200,000 in the fourth year and $800,000 in the seventh year. Is this investment considered good if investors expect a 10% return on it? What is the rate of return if the investment proceeds obtained at present value will be $560,000?
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