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The firm XYZ imvests $2.5 billion to bulid a new plant. They expect the first year EBIT to be $1 billion and growing at 5%

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The firm XYZ imvests $2.5 billion to bulid a new plant. They expect the first year EBIT to be $1 billion and growing at 5% for the next 5 years. The tax rate is 30%. The firm has to keep working capital at 10% of EBIT. For simplicity, assume no amortization or capital expenditures. The firm plans to sell the plant at 51.5 billion at the end of year 5.XYZ 's WACC is 10% What is the discount factor in year 3 ? 0.91 0.83 0.75 0.68

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