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Project Zeta Is Expected to Produce After-Tax Cash Flows $30

Question 74

Multiple Choice

Project Zeta is expected to produce after-tax cash flows $30 million in year 1,$40 million in year 2,and $50 million in year 3.If the company uses a 12% required rate of return,what is the most it can invest in this project and break even with respect to NPV?


A) $69.03 million
B) $94.26 million
C) $1,11 million
D) $120 million

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