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You are considering opening a new plant. The plant will cost $96 million upfront. After that, it is expected to produce constant profits at the

You are considering opening a new plant. The plant will cost $96 million upfront. After that, it is expected to produce constant profits at the end of every year (the first profits arrive at t=1). The cash flows are expected to last forever. The discount rate is 7%.


At what profits amount would you breakeven in the plant investment?

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