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You are analyzing a project with a 30-year lifetime, with the following characteristics: The project will require an initial investment of $20 million and additional

You are analyzing a project with a 30-year lifetime, with the following characteristics: The project will require an initial investment of $20 million and additional investment of $5 million in year 10 and $5 million in year 20. The project will generate earnings before interest and taxes of $3 million each year. The tax rate is 40%. The depreciation will amount to $500,000 each year, and the salvage value of the equipment will be equal to the remaining book value at the end of year 30. The cost of capital is 12.5%. What is the net present value (NPV) of this project.

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