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QUESTION 10 The discount rate is 5% per annum, and there is project that requires an initial investment of $25 million. If this project earns
QUESTION 10 The discount rate is 5% per annum, and there is project that requires an initial investment of $25 million. If this project earns $5 million in Yr 1, $12 million in Yr 2 and $7 million in Yr 3, what is the net present value of the project?
- 5.47 million dollars
- 2.14 million dollars
+ 3.31 million dollars
- 3.31 million dollars
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