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The TinTin Company is considering opening a tin mine. The initial investment will cost 10 million. The profits from the mine will be 3 million

  1. The TinTin Company is considering opening a tin mine. The initial investment will cost 10 million. The profits from the mine will be 3 million per year for eight years. The company will have to provide environmental measures to the nearby communities and they will cost 12,000 per year forever. What is the NPV of this investment if the cost of capital is 5%? Should the firm undertake the project?

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