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Question 4(20 points ) A project requires initial investment of 20m at t=0 ( t in years) and 10m after one year. Income will be
Question 4(20 points ) A project requires initial investment of 20m at t=0 ( t in years) and 10m after one year. Income will be received over a 20-year period beginning from t=2 at a continuous rate of 6.0m p.a. with the project having no value at the end of this period. (1) Calculate the NPV (Net Present Values) of the project at an effective rate of interest of 5% p.a. (2) Calculate the DPP (Discounted Payback Period) of the project at an effective rate of interest of 5% p.a
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