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Company A Market Value Balance Sheet ($ Million) and Cost of Capital Assets Liabilities& Equity Cost of Capital Cash 0 Debt 200 Debt 8% Other

Company A Market Value Balance Sheet ($ Million) and Cost of Capital
Assets Liabilities& Equity Cost of Capital
Cash 0 Debt 200 Debt 8%
Other Assets 500 Equity 300 Equity 15%
t_c 40%

Free Cash Flows of Company ABC's New Project
Year 0 1 2 3
Free Cash Flows -$ 100.00 $ 50.00 $ 50.00 $ 50.00

Assume that this new project is of average risk for Company ABC and that the firm wants to hold constant its debt-to-equity ratio.

The NPV for Company ABC 's new project is closest to:

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