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You are looking to expand your business by buying the exclusive rights for aircraft engine repair in your home airport. After doing your due diligence,

You are looking to expand your business by buying the exclusive rights for aircraft engine repair in your home airport. After doing your due diligence, you figure that this opportunity presents the following cash flows:

Up-front cost = $5,000,000 yearly cash flows (growing at 3% per year forever) = $600,000

Your opportunity cost of capital for this investment is 14%. What are the NPV and IRR? Should you expand into the engine repair business

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