6. A firm is considering an investment project involving an initial cost of 400 million. The life...

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6. A firm is considering an investment project involving an initial cost of 400 million. The life of the project is estimated as 5 years. The project will provide annual net cash inflow of 165 million. The cost of capital is 15 per cent. The inflation rate is 5 per cent per annum. Should the project be accepted?

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