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You are considering opening a new store. The store will cost $101.3 million upfront and will take 1 year to build. After that, it is
You are considering opening a new store. The store will cost $101.3 million upfront and will take 1 year to build. After that, it is expected to produce profits of $30.5 million at the end of every year of production. Your cost of
capital is 6.5%.
- What is the NPV of this investment?
- What is the IRR of this investment? (round 3 decimal places
- Does the IRR rule agree with the npv rule?
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