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Home Depot sells an infinitely lived, left-handed hammer for 10. You are an entrepreneur. If you buy this hammer, your company's free cash flow will

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Home Depot sells an infinitely lived, left-handed hammer for 10. You are an entrepreneur. If you buy this hammer, your company's free cash flow will increase by 1.5 per year, in perpetuity, starting one year from now. There is no risk. If the annual risk-free interest rate is 10%, what is the NPV of buying this hammer? A. -2.5 B. -5 C. 5 D. 8.5

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