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The amount of the loan is US dollars 800,000 at a rate of 2% per year. - The loan schedule for the principal is to

The amount of the loan is US dollars 800,000 at a rate of 2% per year. - The loan schedule for the principal is to be repaid in 2 equal instalments. - The borrowing capacity generated by the project is EUR 400,000.

Compute the APV of the company in EUR. Should the company accept or reject the project now?

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