What is the net present value of project

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A firm is considering a project that has an up front cost of $50M. The project is expected to produce environmentally hazardous materials that must be stored securely forever, even after the project has stopped generating revenues. This, starting in year 11 the project is expected to generate a negative cash flow of $1M a year, each year forever. The appropriate discount rate for project is 8% per year compounded annually. What is the net present value of this project?

Reference no: EM133109700

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