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39 39. Big Al's Gas Company owns several gas stations, and they are looking to add another. The new gas station is expected to generate
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39. Big Al's Gas Company owns several gas stations, and they are looking to add another. The new gas station is expected to generate a net cash flow of 585,000 for 65 years starting at the end of first year. If Big Al's cost of capital is 6%, and they need to invest $1 million to get started (at t=0), what is the NPV of this gas station? a) $292,114 b) $151,733 c) $55,359 d) $199,345 e) $384,575 Step by Step Solution
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