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Assume that a project earns $12mln in the next year. These cash flows are expected to decrease with -3% per year in the following years.
Assume that a project earns $12mln in the next year. These cash flows are expected to decrease with -3% per year in the following years. The project has an infinite life. Further assume that the discount rate is 10%. What is the present value of these cash flows? Please give your answer in two decimals.
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