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6A challenging question. Hint: ) Recall the NPV cquation and the definition of IRR: (i) Recall the algebra behind the derivation of the Constant-Growth Dividend

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6A challenging question. Hint: ) Recall the NPV cquation and the definition of IRR: (i) Recall the algebra behind the derivation of the Constant-Growth Dividend Discount Model. The same formula can be applied here (see "constantly grow at a rate of 6 percent per year forever" The Chandler Group wants to launch a new project. The project will provide a net cash inflow of S57,000 for the firm at the end of the first year, and the cash flows are projected to constantly at a rate of 6 percent per year forever. The project requires an initial investment of 5759,000. The firm requires a 14% return on such undertakings (ie. cost of capital). Ihe

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