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Initial Investment=$8 --> expected to generate $1.1 EBIT in year 1 with a 3% growth rate for perpetuity. Corporate Tax = 35%, Equity Cost of

Initial Investment=$8 --> expected to generate $1.1 EBIT in year 1 with a 3% growth rate for perpetuity. Corporate Tax = 35%, Equity Cost of Capital = 13.5%, Debt Cost of Capital = 7%

1. What is the NPV of this project with 100% Equity?

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