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Suppose we double all the cash flows of a given project (including the initial investment amount). This will cause the IRR to double True False
Suppose we double all the cash flows of a given project (including the initial investment amount). This will cause the IRR to double True False Southwest Airlines is considering buying a new Boeing 737. The airplane will cost 34 million dollars today and then generate 9 million dollars per year for the next 13 years. After 13 years, the airplane will not generate any cash for Southwest Airlines. If the cost of capital is 10%, what is the NPV (in millions of dollars) of buying the new airplane? (Enter your answer in millions. i.e. 5.5 million, not 5,500,000)
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