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Q1: Assume that Gerhardt Corporation is considering an investment of $50 million in a capital project that will return after-tax cash flaws of $16 million

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Q1: Assume that Gerhardt Corporation is considering an investment of \$50 million in a capital project that will return after-tax cash flaws of \$16 million per year for the next four years plus another $20 million in year five. The required rate of return is 10 percent. - Q2: Consider the Hoofdstad Project, which requires an investment of \$1 billion initially, with subsequent cash flows of $200 million, \$300 million, \$400 million, and \$500 million. What is the net present value of the Hoofdstad Project if the required rate of return of this project is 5\%? (Use 1,000 million for 1 billion.) (Use all the cashflows in million)

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