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# A project costs \$1.8 million today to get started and will produce after-tax cash flows of -\$200,000, \$0, \$200,000, \$400,000 in years 1,2,3,4.

A project costs \$1.8 million today to get started and will produce after-tax cash flows of -\$200,000, \$0, \$200,000, \$400,000 in years 1,2,3,4. After year 4 the cash flows will increase by 3% per year forever. What is the NPV of the project if the discount rate is 15%?

1. \$89,035
2. \$746,523
3. \$349,311
4. \$217,809
5. \$367,610

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The NPV of the project if... View the full answer

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