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A project cost $2.3 million up front and will generate cash flows in perpetuity of $290,000. The firm's cost of capital is 11%. a. Calculate
A project cost $2.3 million up front and will generate cash flows in perpetuity of
$290,000. The firm's cost of capital is 11%.
a.Calculate the project's NPV.
b.Calculate the annual EVA in a typical year.
c.Calculate the overall project EVA.
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