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Suppose we are asked to decide whether a new project should be launched. We expect that cash flows over the five-year life of the project
Suppose we are asked to decide whether a new project should be launched. We expect that cash flows over the five-year life of the project will be $350 million in the first two years, $375 million in the next two years, and $385 million in the last year. The initial investment is expected to cost $995 million. The firms required return is 10%. Using a financial calculator, compute the NPV and IRR of this project.
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