Question: Consider the following project: Initial outlay = $15 million Year 1 expected cash flow = $8 million Year 2 expected cash flow = $6 million

Consider the following project:

Initial outlay = $15 million

Year 1 expected cash flow = $8 million

Year 2 expected cash flow = $6 million

Year 3 expected cash flow = $11 million

Project cost of capital = 13.9%p.a.

The net present value of this project is closest to (in millions to the nearest three decimals):

a.
$34.093
b.
$1.763
c.
$4.093
d.
$4.736

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