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Springfield Inc., a large conglomerate firm, plans to build a new toll way. The cost (NINV) of the project is expected to be $1.5 billion.

Springfield Inc., a large conglomerate firm, plans to build a new toll way. The cost (NINV) of the project is expected to be $1.5 billion. Net cash inflows are expected to equal $510 million per year. How many years must the firm generate this cash inflow stream for investors to earn their required 28 percent rate of return?

Question 25 options:

Around 5 years

Around 7 years

Around 4 years

Around 3 years

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