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Suppose that an investment project has an immediate cost of $100 million followed by costs of $50 million at the end of one year and

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Suppose that an investment project has an immediate cost of $100 million followed by costs of $50 million at the end of one year and a further $25 million at the end of two years. Net revenues (i.e., revenues in excess of operating costs) accrue in the amount of $16 million at the end of each year beginning in an interest rate of 9%

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