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7. Lucius plans to open a custom paint and auto repair shop. The machinery, paints and equipment will cost $2,160,000. Lucius expects the after-tax cash
7. Lucius plans to open a custom paint and auto repair shop. The machinery, paints and equipment will cost $2,160,000. Lucius expects the after-tax cash inflows to be $825,000 annually for 14 years, after which he plans to scrap the equipment and retire to the beaches of Bermuda. Assume the required return is 10%. What is the project's NPV? Multiple Choice:
$8,237,517
$3,917,517
$3,450,000
$5,173,300
$9,390,000
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