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You are considering building a new facility. It will cost $ 6 9 6 million upfront. After that, it is expected to produce FCFs of

You are considering building a new facility. It will cost $696
million upfront. After that, it is expected to produce FCFs of $261 million at the end of every year for 5 years. At the end of 5 years, the revenues will stop but there will be a one-time cleanup FCF(outflow) of $522 million that will occur in year 6. No other CFs will occur after this. The discount rate is8% for this investment.
a. Calculate the NPV of this investment.
b. How many potential IRRs are there?
c. Answer the following True/False questions.

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