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1. Assume you want to determine the net present value of a project which will cost $5 million today and which will generate its first
1. Assume you want to determine the net present value of a project which will cost $5 million today and which will generate its first semiannual cash flow of $500,000 four months from today. Subsequent semiannual cash flows will shrink by 2% cach and will continue through nine years and 10 months from today. The cost of capital on the project equals 7.8% per year
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