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As a CEO of a private firm, you are considering a government contract that will generate a constant and risk - free cash flow of
As a CEO of a private firm, you are considering a government contract that will generate a constant and riskfree cash flow of $ million each year for the firm over the next four years.
In order to determine the price of the project, you have collected the Treasury bond price information as follows:
The prices of Treasury zero coupon bonds with $ face value and different maturities are: $ for year maturity, $ for year maturity, $ for year maturity, and $ for year maturity.
Given the information above, what should be the price of the project?
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