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You have found an investment opportunity. The opportunity costs $5 million today and it will generate the following free cash flows over the next five
You have found an investment opportunity. The opportunity costs $5 million today and it will generate the following free cash flows over the next five years:
Time | 1 | 2 | 3 | 4 | 5 |
FCF | 1.2 | 1.7 | 2.4 | 3.5 | 4.2 |
Starting from year 6, the FCFs will grow at a constant rate of 1.5% forever. If the project WACC is 3%, what is the NPV of the project?
Answer in Million dollars and round to the first two decimal places.
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