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Dorset Pharmaceuticals is considering a drug development project that costs $20 million today and is expected to generate year-end annual cash flows of $1 million,

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Dorset Pharmaceuticals is considering a drug development project that costs $20 million today and is expected to generate year-end annual cash flows of $1 million, forever. The first cash inflow is expected to occur at the end of Year 6. At what discount rate would Dorset Pharmaceuticals be indifferent between accepting or rejecting the project? Question 4 (6 marks) Suppose you wish to buy a new car two years from now. To achieve your goal, you will be depositing $10,000 into a bank account every quarter. The first deposit is made today and the last deposit 1.5 years from now. The account pays an interest rate of 8%, compounded quarterly. How much at most can you spend on buying a new car in two years

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