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Project M requires an initial investment of $22.5 millions. The project is expected to generate $2.25 millions in after-tax cash flows each year forever. If

Project M requires an initial investment of $22.5 millions. The project is expected to generate $2.25 millions in after-tax cash flows each year forever. If the weighted average cost of capital (WACC) is 9% calculate the NPV of the project.

A.

-2.5 million

B.

2.5 million

C.

0

D.

none of the above

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