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You are considering opening a new plant. The plant will cost $500 million upfront. After that, it is expected to produce free cash flows that
You are considering opening a new plant. The plant will cost $500 million upfront. After that, it is expected to produce free cash flows that will last forever. The cash flow is expected to start at $30 million in the first year and grow at a constant rate of 3%. Calculate the NPV of this investment opportunity if your opportunity cost of capital is 8%.
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