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Suppose a firm is considering a project with the following net benefit stream: Year

Suppose a firm is considering a project with the following net benefit stream: 


Year                                       0          1            2               3               4           5 


Net Benefit (Market)            -700      200        200         200        200       200 


To undertake this project, the firm will open an overdraft account worth 50% of the initial cost in year 0. 


Calculate: 


a) The interest payments on the overdraft


b) The stream net private benefits after interest


c) The net present value of the private benefit.

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