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Monsters University is constructing a new science building and the present value of the current price tag for the stadium is $600 million. This building

Monsters University is constructing a new science building and the present value of the current price tag for the stadium is $600 million. This building will take one year to build and will generate positive after tax cash flows of $9 million per year forever. Monsters Universitys opportunity cost of capital is 11%.

1. What is the NPV of the new building?

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