Question: the firm is considering a superstore, the risks associated with the superstore are comparable to the risks of the firms current operations, the superstore will
the firm is considering a superstore, the risks associated with the superstore are comparable to the risks of the firms current operations, the superstore will require an initial investment of 12 million, is expected to generate no cash in year one, and to generate CF2-CF11 of 1.4 million annually over the ten years. the initial investment will be depreciated ona. straight line basis over the 11-year life of the project. at the end of year 111, the firm expects to sell the supersotre for 6.7 million. what is the NPV
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