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Question 3 (4 marks Dorset Pharmaceuticals is considering a drug development project that costs $20 million today and is expected to generate year-end annual cash

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Question 3 (4 marks Dorset Pharmaceuticals is considering a drug development project that costs $20 million today and is expected to generate year-end annual cash flows of $1 million, forever. The first cash inflow is expected to occur at the end of Year 6. At what discount rate would Dorset Pharmaceuticals be indifferent between accepting or rejecting the project

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