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Lincoln Coal is planning a new plant. The plant will cost 430,000 to build in...

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Finance

Lincoln Coal is planning a new plant. The plant will cost 430,000 to build in year 0. It will earn 200,000 at the end of each year, from year 1 to year 7. When production stops, the plant will be closed with a total estimated closure cost of 170,000. Lincoln's cost of capital is estimated at 16%. a) What is the NPV of this project? b) What is the discounted payback period?

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