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Consider a project with a single risk-free cash flow of $1,000 in one year. The project requires an initial investment of $500 from equityholders. All
"Consider a project with a single risk-free cash flow of $1,000 in one year. The project requires an initial investment of $500 from equityholders. All investors are risk neutral. The interest rate is 0. What is the NPV of the project for equityholders if the firm has no other cash flows but has outstanding debt with a face value of $900?"
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