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Problem 4 : You invest $ 1 0 million into an oil pipeline that will generate a $ 2 million cash inflow over the coming
Problem : You invest $ million into an oil pipeline that will generate a $ million cash inflow over the coming year, and it is expected to grow with an annual growth rate of in the next years. However, the operation cost will be $ million over the coming year, and is expected to growth at in the next years. Suppose at the end of year, you can sell the oil pipeline with the price of $ million, what is the NPV of this pipeline project if the discount rate is this pipeline project if the discount rate is
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