Suppose ABI Construction is considering investing in a new project of urban development. The cost of the project is $12 Millions of USD. ABI expects that the non-incremental yearly cash flows from the project are $4 Million of USD for the next five years; e.g. that is $4 Million of USD each year. Using the calculated WACC in the previous question, what is the Net Present Value (NPV) of the project?

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To calculate the Net present value we have to find out the W... View the full answer