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QUESTION
A project requires an initial investment of $4000 and will produce cash inflows of $1500 at the end of year 1 and $2500 at the end of year 2.
A project requires an initial investment of $4000 and will produce cash inflows of $1500 at the end of year 1 and $2500 at the end of year 2. What should be the minimum salvage value at the end of year 3 in order to have an IRR of at least 15% (there is no other cash flow in year 3)?
