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Business, 11.04.2020 03:05 thedocgalloway

A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $900 million. (LO8-1 and LO8-2)

a. What is project NPV if the discount rate is 5%?

b. What if the discount rate is 18%?

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