Question: Firm D is evaluating a proposed capital project. The project has an expected life of 6 years and an NPV of $3,700. If the cost
Firm D is evaluating a proposed capital project. The project has an expected life of 6 years and an NPV of $3,700. If the cost of capital is 11%, what is the present value of the project stream assuming that it is replicated "forever" using the EAA (UAS) technique?
a. $6,758
b. $11,020
c. $8,984
d. $7,951
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