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A firm is considering a project that requires 5 million as initial capital expenditures. Its annual benefit is 4 million in each of the following
A firm is considering a project that requires 5 million as initial capital expenditures. Its annual benefit is 4 million in each of the following two years and then the project ends. Assume the annual discount rate is 10%. The NPV of this project is closest to
[5 marks]
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2.34 million.
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1.94 million.
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1.54 million.
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1.14 million.
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