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A project requires an investment of $900 today. It can generate sales of $1,100 per year forever. Costs are $600 for the first year and
A project requires an investment of $900 today. It can generate sales of $1,100 per year forever. Costs are $600 for the first year and will increase by 19 percent per year. (Assume all sales and costs occur at year-end [i.e., costs are $600 @t = 1].) The project can be terminated once cost exceeds revenue. Ignore taxes and calculate the NPV of the project at a 11 percent discount rate. O $89.00 O It cannot be calculated as g>r. O $105.35 O $164.00
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