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Calculate the npv of this investment opportunity

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Disney Corporation is considering the re-release of its classic film library. The project will involve an investment of $23,000,000 and will produce a positive cash flow of $5,500,000 in the first year. The cash flows will increase by 10% each year thereafter for another five years (i.e. the project runs for six years). At that stage the project will cease. The company expects a rate of return of 15% on this type of project.

Calculate the NPV of this investment opportunity?

Reference no: EM132473572

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