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10 million to buy company. Takes 3 years to build. Assume you could earn 8.1 million at the end of the year. Cost of capital
10 million to buy company. Takes 3 years to build. Assume you could earn 8.1 million at the end of the year. Cost of capital is 10.2%
1. The npv is?
2. If it generates royalties of 4.9 million the first year, and will decrease by 30% perpetually. What is the npv now?
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