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A project requires an investment of $906 today. It can generate sales of $1,112 per year forever. Costs are $606 for the first year and
A project requires an investment of $906 today. It can generate sales of $1,112 per year forever. Costs are $606 for the first year and will increase by 20 percent per year. (Assume all sales and costs occur at year-end [i.e., costs are $606 @ t = 1].) The project can be terminated at any time without cost. Ignore taxes and calculate the NPV of the project at a 12 percent discount rate
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