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Your company is considering a capital investment of $150 million. The project will produce equal annual operating cash flows of $40 million over its six-year
Your company is considering a capital investment of $150 million. The project will produce equal annual operating cash flows of $40 million over its six-year life. At the end of the six years it will be sold for $30 million, which is $20 million above its adjusted tax basis. The project will require a $10 million investment in net working capital, all of which will be recovered upon project termination. Your company has a 21% marginal tax rate and a 14.4% required return. What is this project's NPV? (Show your answer to the nearest dollar.)
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