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A project costs $100 today, generates a level cash flow of $25 starting in one year and continuing in annual increments forever. Investors have a

  1. A project costs $100 today, generates a level cash flow of $25 starting in one year and continuing in annual increments forever. Investors have a 5% cost of capital. What is the NPV of this project?

    <$100

    Between $100 and $200

    Between $200 and $300

    >$300

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