Question: A new grocery store requires $50 million in initial investment. You estimate that the store will generate $5 million of after-tax cash flow each year

A new grocery store requires $50 million in initial investment. You estimate that the store will generate $5 million of after-tax cash flow each year for five years. At the end of five years, it can be sold for $60 million (ignore taxes). What is the net present value (NPV) of the project at a discount rate of 10 percent?

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