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What is the npv of the project for jupiter inc

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Reference no: EM132790182

Jupiter Inc.'s directors are considering expanding their operations in foreign markets. They estimate that the cost of expansion is approximately $42 million. The company's CFO has estimated that new foreign operations will generate the following cash flows:

Year 1 = $2,120,000
Year 2 = $2,838,000
Year 3 = $3,480,000
Year 4 = $4,570,000

Problem 1: Year 5 onward, the cash flow stream is going to stabilize at $5,500,000 which is going to continue forever. Given that the company's required rate of return is 11%, what is the NPV of the project?

Reference no: EM132790182

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