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Question 5 1 pts A firm is considering a project that will result in the following cash flows: Investments will be required at the beginning

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Question 5 1 pts A firm is considering a project that will result in the following cash flows: Investments will be required at the beginning of each year for the first 9 years. The initial investment will cost 63 million, and each subsequent investment will decrease by 7 million. Annual revenue payments will be paid into perpetuity, starting at the end of year 1. Revenue payments will increase for the first 14 years, and will decrease every year thereafter. The first revenue payment will in the amount of 2 million. Annual revenues will increase by 2 million each year for the first 14 years, reaching a maximum of 28. The revenue payments occurring after the end of year 14 will each be 3% less than the previous payment. Assuming that the cost of capital is 5%, calculate the NPV of this project, in millions of dollars. 26.225 28.323 O 27.274 25.176 O 29.372

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