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I. The project defined by the following decision tree has a required discount rate of 14 %. (3 pts) Cash Flow After Tax ?! Invest
I. The project defined by the following decision tree has a required discount rate of 14 %. (3 pts) Cash Flow After Tax ?! Invest $100.000.000 t=0 Success Years 2-5 $66.000.000/year Test Cost Do Not Invest NPV = $ 0 $20,000.000 Failure NPV = $.20.000.000 Do not test What is the Time 1 net present value of a successful investment
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