Firm is considering investing in project with upfront cost

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A firm is considering investing in a new project with an upfront cost of $400 million. The project will generate an incremental free cash flow of $50 million in the first year and this cash flow is expected to grow at an annual rate of 4% forever. If the firm's WACC is 13%, what is the value of this project?

Reference no: EM13784391

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