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Suppose your company is contemplating starting a new business line. The initial investment would be $50,000,000,000. They expect the project to bring in a stream
Suppose your company is contemplating starting a new business line. The initial investment would be $50,000,000,000. They expect the project to bring in a stream of $1,000,000,000 per year for 40 years. At the end of the 40th year, the company would sell that business line for an estimated $70,000,000,000. Find the NPV, IRR, Payback Period, and Profitability Index of the project.
Return on common stock used is 20%
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