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9. The project defined by the following decision tree has a required discount rate of 14 percent. Cash Flow After Tax t=1 Inv
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Answer #1
Year Cashflow PV of cashflows( at t = 1)
0 $    -2,00,00,000.00 $-2,28,00,000.00
1 $ -10,00,00,000.00 $-10,00,00,000.00
2 $      6,60,00,000.00 $5,78,94,736.84
3 $      6,60,00,000.00 $5,07,84,856.88
4 $      6,60,00,000.00 $4,45,48,120.07
5 $      6,60,00,000.00 $3,90,77,298.31
NPV = $6,95,05,012.10

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