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Clorox is thinking about introudcing a new brand of cleaning products. Marketing and developing the...

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Finance

Clorox is thinking about introudcing a new brand of cleaning products. Marketing and developing the new products will cost 597 million dollars. In one year, the new products will generate a cash flow of 45 million dollars. In two years, the new products will generate a cash flow of 73 million dollars. In three years, the new products will generate a cash flow of 97 million dollars. After that, cash flows are expected to grow by 2% forever. If the cost of capital is 11%, what is the NPV of this project (in millions)?

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