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A firm is considering an emerging market project that costs $100,000 today and is expected to generate end-of-year annual cash flow of $20,000 forever. At

A firm is considering an emerging market project that costs $100,000 today and is expected to generate end-of-year annual cash flow of $20,000 forever. At what discount rate Adidas would be indifferent between accepting and rejecting the project?

a.20%

b.10%

c.30%

d. 40%

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