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Sam's is considering investing in a project that requires an after-tax initial investment of $156 million and is expected to produce after-tax cash inflows of

Sam's is considering investing in a project that requires an after-tax initial investment of $156 million and is expected to produce after-tax cash inflows of $40 million for each of the next five years. The firm's cost of capital is 8%. Based on this information, the NPV of the project is

million and the firm should

the

project

O $3.7; accept

O ) $169.3; accept

O -$159.3; reject

O -$3.7 , reject

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