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A project requires an initial investment of $20 millions. The project is expected to generate $3.2 millions in after- tax cash flows each year forever.

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A project requires an initial investment of $20 millions. The project is expected to generate $3.2 millions in after- tax cash flows each year forever. If the weighted average cost of capital (WACC) is 11% calculate the NPV of the project 6.67 million 4.11 million 7.15 million 9.09 million QUESTION 7 Four investors enter into long corn futures contracts. Three are speculators and one is hedging. Which of the following is hedging? Cereal company Farmer Pension Fund Mutual fund

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