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BHP is setting up a lithium mine that costs $120 million today to open. It will generate $20 million in revenue for the next 10

BHP is setting up a lithium mine that costs $120 million today to open. It will generate $20 million in revenue for the next 10 years with operating costs being 10% of annual revenue. After that, the mine is leased out to Rio Tinto which will pay rent of $2 million a year in perpetuity. This rent starts in year 11. BHP has a cost of capital of 10%. Calculate the NPV of this project.

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