Question: A certain project costs $ 1 , 0 0 0 , 0 0 0 up front, but after that it will generate net cash inflows

A certain project costs $1,000,000 up front, but after that it will generate net cash inflows each year (in perpetuity) of $120,000. The cost of capital is 10%. Calculate the Economic Value Added (EVA) and NPV for the project.

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