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You are evaluating a new project. The project has revenues of $100k per year, and...

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Finance

You are evaluating a new project. The project has revenues of $100k per year, and operating costs of $40k per year, both paid at the end of the year. There are no taxes. The project also requires an initial inventory of $500k. Each year, inventory will increase by $100k. The project will be in operation for 10 years before shutting down. If the firms discount rate is 6%, what is the NPV of the project?

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