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Fortran Corporation: Recommend that the project be adopted

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Suppose the going market rate of interest on high quality bonds is 12 percent. FORTRAN Corporation is considering an investment project that will last 10 years and requires an initial cash outlay of $1.5 million but will generate estimated revenues of $500,000 per year for 10 years. Would you recommend that this project be adopted? Explain why.

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The expert recommends a project to be adopted for Fortran Corporation.

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Suppose the going market rate of interest on high quality bonds is 12 percent. FORTRAN Corporation is considering an investment project that will last 10 years and requires an initial cash outlay of $1.5 million but will generate estimated revenues of $500,000 per year ...

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