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You are planning to buy a petrol station, which costs $500,000. The station will be in...

  1. You are planning to buy a petrol station, which costs $500,000. The station will be in operation for 10 years. If purchased, the business is expected to generate a first cash flow of $90,000 this year which is expected to grow at 6.5% p.a. If the similar business offers 14.5% p.a. rate of return, use IRR and NPV approach to identify if it is worth buying.
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