Question: Firm D is evaluating a proposed capital project. The project has an expected life of 7 years and an NPV of $3,600. If the cost
Firm D is evaluating a proposed capital project. The project has an expected life of 7 years and an NPV of $3,600. If the cost of capital is 12%, what is the present value of the project stream assuming that it is replicated "forever" using the EAA (UAS) technique?
a. $6,574
b. $9,164
c. $8,572
d. $5,982
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