NPV. A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash

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NPV. A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 years. After that period (in Year 15), it must be decommissioned at a cost of $900 million. What is project NPV if the discount rate is 6 percent?

What if it is 16 percent?

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Ali Khawaja

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