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Suppose a firm has an annualized cost of capital of 1 4 % . If the firm has a project that pays off $ 2

Suppose a firm has an annualized cost of capital of

14 % .

If the firm has a project that pays off $

22

million per month in perpetuity, how much should the firm be willing to pay for the project if it is a

+

NPV project?

(

you need to consider compounding for this project

) .

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