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A company is considering an investment project X. The project is expected to change the company's free cash flow over the next 6 years from:
A company is considering an investment project X. The project is expected to change the company's free cash flow over the next 6 years from: (Cash Flows of the company without project X ) to: (Cash Flows of the company with project X ) The incremental cash flows are: A. Calculate the Net Present Value (NPV) of project X if the cost of capital is 6%. Should this project be undertaken? Explain your reasoning. B. Calculate a six-year discount factor and provide its interpretation. C. If, hypothetically, there existed an alternative project that brings perpetual profits each year for infinitely many years, and which present value is equal to that of project X, what annual profits would it generate
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