Question: Imagine Six Flags is evaluating an underperforming park. Six Flags wants to invest 50 mln at t=0 to get an incremental increase in cash flows

Imagine Six Flags is evaluating an underperforming park. Six Flags wants to invest 50 mln at t=0 to get an incremental increase in cash flows of $10 mln/year (that grows at 1 percent/year forever). The discount rate is 12%. What is the NPV of the investment decision?

A) 41.8

B) 151

C) -31.8

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