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Analysis in Real Terms (Type A). You are evaluating a new business where you will have the following information: Initial investment: $ 2,000,000, salvage value:

Analysis in Real Terms (Type A). You are evaluating a new business where you will have the following information: Initial investment: $ 2,000,000, salvage value: $ 500,000 Income: $ 900,000 today, growing 3% above the general price index (INPC).

Costs: -Labor $ 20,000 today (differential growth:

-1%) above the general price index (INPC)

- Materials: $ 15,000 growing today:

5% higher than the general price index (INPC)

Shelf life: 5 years

Depreciation: Depreciation accelerated to 150%

Tax rate (ISR): 30% Inflation of the general price index: 9%

Nominal TREMA after taxes: 12%

The Project _______ is viable because it has a NPV of ______________$ and an IRR of________________% (Use 99,999,999.99 VPN format)

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