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The project requires an investment of $10 million in mining machinery and at the end of 5 years the machinery has no further value. Working

The project requires an investment of $10 million in mining machinery and at the end of 5 years the machinery has no further value. Working capital increases as the project gears up in the early years, but later in the projectss life, the investment in working capital is recovered. Working capital year 0, 1, 2, 3, 4 and 5: $1500000, $4075000, $4279000, $4493000, $4717000, and $3039000 subsequently. The compnay expects to sell 750,000 pounds magnoosium a year at a price of $20 a pound in year 1 and the revenue is expected to grow at 5% every year. The expenses in year 1 is $10million and is expected to increase in line with the revenue growth rate. Straight line depreciation is applied. Tax is 35%. Calculate net cash flow

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