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NPV and EVA A project costs 25 million up front and will generate cash flows in perpetuity of 240000 The firms cost of capital is 9 a Calculate the projects NPV b Calculate the annual EVA

NPV and EVA A project costs $2.5 million up front and will generate cash flows in perpetuity of $240,000. The firm’s cost of capital is 9%.
a. Calculate the project’s NPV.
b. Calculate the annual EVA in a typical year.
c. Calculate the overall project EVA and compare to your answer in part a.

Jun 03 2021 View more View Less

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