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Project A has a net present value of zero when the discount factor of 20% is used. How much return is the project earning? [5

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Project A has a net present value of zero when the discount factor of 20% is used. How much return is the project earning? [5 Marks] If project A above is earning K150,000 per year in perpetuity, what is the initial investment cost of the project? [5 Marks] Company A expects to generate K150,000 cash flows per year in perpetuity and the risk adjusted discount rate is 20%. What should be the certainty equivalent cash flows when the risk free rate is 10% [10 Marks

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