Calculate the overall project eva

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Reference no: EM131088040

NPV and EVA: A project costs $2.5 million up front and will generate cash flows in perpetuity f $220,000. The firm's cost of capital is 7%.

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.

Reference no: EM131088040

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