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Suppose Amarillo Shopping Center (ASC) has a project opportunity. The project has an initial cost of $10 million. The projects expected cashflows are $1 million

Suppose Amarillo Shopping Center (ASC) has a project opportunity. The project has an initial cost of $10 million. The projects expected cashflows are $1 million the first year and will decline by 1% per year thereafter. ASC has an equity cost of capital of 5%, a debt cost of capital of 3%, a capital structure of 40% equity and 60% debt, and has a tax rate of 20%. What is the NPV of this project (in millions)?

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