Considering construction of a new attraction

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Reference no: EM13921281

Wonder World is considering construction of a new attraction. It will require an investment of $10 million. The expected after tax cash flows are listed below and the required rate of return is 12%.

$3,500,000

$2,500,000

$2,000,000

$1,500,000

$4,000,000

Should Wonder World construct the new attraction? Why or Why not?

Reference no: EM13921281

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Considering construction of a new attraction : Wonder World is considering construction of a new attraction. It will require an investment of $10 million. The expected after tax cash flows are listed below and the required rate of return is 12%.

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