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7. Assume you have completed a capital budgeting analysis ofbuilding a new plant on land you own, and the project's NPV is $100million. You now realize that instead of building the plant, youcould build a parking garage, and would generate a pre tax revenueof $17 million. The project would last 3 years, the corporate taxrate is 40%, and the WACC is 12%. What is the new NPV ofthe project, after incorporating the effect of theopportunity cost?
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