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Question 7 Not yet answered You are considering an investment in a new factory that will operate for 3 years. The initial investment will be

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Question 7 Not yet answered You are considering an investment in a new factory that will operate for 3 years. The initial investment will be 384928. The nominal revenues at the end of Year 1 will be $250000. Revenues will grow at a real rate of 1%. Inflation will be 2%. The nominal costs at the end of Year 1 will be $30000. Costs will grow at a nominal 4% rate. The investment will depreciated on a straight line basis to zero over 3 years. It will have zero market salvage value at the end of 3 years. The required real rate of return for the investment is 8%. The tax rate is 21%. What is the NPV of the project? 1.00 P Flag question Select one O a. $155431 b.$9157 0 $194635 O d. $124638 O e. $125439

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