A proposed nuclear power plant will cost $2.9 billion to build and then will produce cash...

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A proposed nuclear power plant will cost $2.9 billion to build and then will produce cash flows of $370 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $970 million. Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places. a. What is the NPV of the project if the discount rate is 4%? Net present value billion b. What is the NPV of the project if the discount rate is 16%? Net present value billion A proposed nuclear power plant will cost $2.9 billion to build and then will produce cash flows of $370 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $970 million. Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places. a. What is the NPV of the project if the discount rate is 4%? Net present value billion b. What is the NPV of the project if the discount rate is 16%? Net present value billion

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To calculate the Net Present Value NPV of the proposed nuclear power plant project we can use the fo... View the full answer