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NPV and EVA A project cost $2.9 million up front and will generate cash flows in perpetuity of $260,000 The firm's cost of capital is

NPV and EVAA project cost

$2.9

million up front and will generate cash flows in perpetuity of

$260,000

The firm's cost of capital is

8%.

a.Calculate the project's NPV.

b.Calculate the annual EVA in a typical year.

c.Calculate the overall project EVA.

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