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B. (15 points) Consider an investment that will cost you $15 million today. It will return you $10 million per year in each of the

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B. (15 points) Consider an investment that will cost you $15 million today. It will return you $10 million per year in each of the next 6 years. After that, yo The required rate of return on this project is 10 percent. a. Calculate the IRR for this project. Based on this IRR, what can you say about whether this is a good project for your company? b. Calculate the NPV of this project. Based on the NPV, what can you say about whether this is a good project for your company? c. What is the NPV of this project if your discount rate is 25 percent? d. What is the NPV of this project if your discount rate is 60 percent? . Explain briefly the intuition behind your answers in parts (b), (c) and (d). Suppose that the firm pays for part of this project by linda this way? points) Consider an investment that will cost you $ 15 million today. It will return you 510 million per your in each of the rest you to eat, you will pay $80 onwar required rate of return on this project is 10 percent a. Calculate the IRR for this project. Based on this IRR, what can you say about whether this is a good project for your company b. Calculate the NPV of this project. Based on the NW, what can you say about whether this is a good project for your company c. What is the NPV of this project if your discount rate is 25 percent? d. What is the NPV of this project if your discount rates 60 percent? . Explain briefly the intuition behind your answers in parts (bl. e) and (d) considering two mutually exclusive projects Project A w require an intent of two single lump sum of $150 million in your wished on tot

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