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Valero Energy Corp. is considering purchasing a refinery that has an unknown initial cost. The project will generate a positive cash flow of $75,000 at

Valero Energy Corp. is considering purchasing a refinery that has an unknown initial cost. The project will generate a positive cash flow of $75,000 at the end of each of the next 20 years . The project has a WACC of 12% and an lRR of 14%.

What is the project NPV? a. $ 96,110 b. $ 496,735 c. $ 560,208 d. $ 63,473 e. $ 78,309

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