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Argyll wants to set up a private business, which will provide net cash inflow of $85,000 for the firm at the end of the first
Argyll wants to set up a private business, which will provide net cash inflow of $85,000 for the firm at the end of the first year. Cash flows are projected to grow at a rate of 6% per year and continue forever. The project requires an initial investment of $1,400,000. If the required rate of return is 13%, what is the net present value of the investment?
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