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3 . NPV and IRR. A proposed gas field will cost $ 2 . 7 billion this year ( year 0 ) to develop and

3. NPV and IRR. A proposed gas field will cost $2.7 billion this year (year 0) to develop and then will produce cash flows of $1.75 billion a year for 4 years from next year (years 1 to 4).After that period (in year 5), it must be decommissioned at a cost of $4.5 billion. What is the project NPV if the discount rate is 2%, if it is 10%, or if it is 25%? Find the IRR.

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