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Business, 23.12.2020 23:00 jose145

Suppose you plan to pay for a billboard ad for your coffee shop that you expect to generate additional net cash flow (after the cost of the ad and after taxes) of $1000 per month. For a three-year contract, you would be required to pay $20,000 up front. A five-year contract would require $25,000 up front. Both contracts are renewable. If you have a required return of 20%, which contract would you choose?

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Suppose you plan to pay for a billboard ad for your coffee shop that you expect to generate addition...

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