Imagine you are considering acquiring a company you have

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Imagine you are considering acquiring a company. You have received their financial statements, and have learned that they have annual cash flows of:

Year 1: $10 Million

Year 2: $8 Million

Year 3: $14 Million

Year 4: $17Million

Additionally, assume that in year 4 you will have a terminal cash flow of $250 Million, should you decide to sell the company at that time. If your discount rate is 15%.

What is the NPV of the project?

Reference no: EM13483634

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