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A firm is considering an investment opportunity today. The initial cash flow (year 0) will be an investment of $50 million. The project is expected
A firm is considering an investment opportunity today. The initial cash flow (year 0) will be an investment of $50 million. The project is expected to generate a project cash flow of $5 million for year 1, and the firm expects project cash flows to increase by 4% per year over the life of the project. The project will run for 20 years, and the firm has a cost of capital of 11%. What is the NPV of this proposed project?
-$1.70 million
$1.82 million
$4.42 million
$8.99 million
$2.02 million
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