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QUESTION 1 Ciara Corp. is considering a project. The (after-tax) free cash flow for each year is given below: Year 0 1 2 3 4

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QUESTION 1 Ciara Corp. is considering a project. The (after-tax) free cash flow for each year is given below: Year 0 1 2 3 4 5 -65,000 30,000 29,000 20,000 15,000 10,000 The relevant discount rate is 10%. What is the approximate (within $100) equivalent annual annuity (annualized NPV) of the project? a. $2200 b. $2600 c. $3000 d. $3400 e. $3800 f. Other, specify

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