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ABC Corp. is a manufacturing company that produces industrial machinery. The company is considering investing in a new project that requires an investment of 1

ABC Corp. is a manufacturing company that produces industrial machinery. The company is considering investing in a new project that requires an investment of 10 million. The expected cash flows from the project are as follows:
Year 1: 3 million
Year 2: 4 million
Year 3: 5 million
Year 4: 6 million
ABC Corp. currently has a cost of debt of 7% and a cost of equity of 15%. The company's capital structure consists of 60% debt and 40% equity. The tax rate is 30%.
Question: Calculate the net present value (NPV) of the project?

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