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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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