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Your firm is considering a project that will cost $4.55 million upfront, generate cash flows of $5 million per year for three years, and then
Your firm is considering a project that will cost $4.55 million upfront, generate cash flows of $5 million per year for three years, and then have a cleanup and shutdown cost of $6 million in the fourth year.Assume a discount rate of 10% per annum, what is the NPV of this project?
Please answer with formula.
Thanks.
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