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Project 3 has a cost of $ 4 0 today, and will generate $ 5 every year in perpetuity ( starting year 1 ) .

Project

3

has a cost of $

40

today, and will generate $

5

every year in perpetuity

(

starting year

1) .

What is the NPV of Project

3 ?

Following the NPV rule, do you accept this project?

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