Calculate the net present value of the investment of company

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Problem 1: A company is evaluating an expansion. This capital investment will require a cash outflow today of $12,000,000. The firm estimates that the investment will pay out a cash flow of $1,000,000 per year for the next 25 years, and then nothing after. The risk-adjusted discount rate required on this project is 9%, calculate the net present value of this investment.

Reference no: EM132920788

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