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4. A project has cash flows of $100 (now at to), and $100, $100, and $100 at the end of consecutive years. The interest rate
4. A project has cash flows of $100 (now at to), and $100, $100, and $100 at the end of consecutive years. The interest rate is 6% per annum. (a) What is the project's NPV? (Hint: the net present value includes the cash flow at to, no matter it is positive or negative.] (b) How does the value change if all cash flows will occur one year later
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