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An investment will require a $1.0 million cash outlay. It will generate perpetual net cash inflows of $115,000 a year. Investors could earn 9 percent elsewhere by taking the same risk. Will this investment generate an economic profit?
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If an MBA cost $35,000 and money can be invested to earn 7 percent, how much does the annual salary for a person holding a masters degree have to exceed that of other college gradu
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