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A project with an initial cost=$500,000, generates a 12% rate of return (IRR) for infinite years, assuming the cost of capital is 10%. Then the
A project with an initial cost=$500,000, generates a 12% rate of return (IRR) for infinite years, assuming the cost of capital is 10%. Then the economic profit (EVA) and the NPV are?
Select one:
a.
10,000 and 10,000
b.
60,000 and 10,000
c.
10,000 and 100,000
d.
500,000 and 600,000
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