XYZ Inc. is deciding whether to buy a new building. The building will increase cash...
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XYZ Inc. is deciding whether to buy a new building. The building will increase cash flows by $4,000,000 per year. The building has a 15-year life and will be obsolete 15 years from today. The building is current priced at $20 million. The cost of the building will decline by $1,000,000 per year until it reaches 10 million, where it remains until it is obsolete. The required rate of return is 15%. Calculate the NPV of the project assuming the project is started today. (Round to 2 decimals)
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