Channel Tunnel, Inc., plans to build a new 23-mile-long tunnel under the English Channel for added train

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Channel Tunnel, Inc., plans to build a new 23-mile-long tunnel under the English Channel for added train service. The cost (NINV) of the tunnel is expected to be $3.3 billion. Net cash inflows are expected to equal $651 million per year. How many years must the firm generate this cash inflow stream for investors to earn their required 19 percent rate of return?

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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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