Question: A company is considering investing in a new production facility that will generate incremental Free Cash Flows in year 1 of $14 which will grow

A company is considering investing in a new production facility that will generate incremental Free Cash Flows in year 1 of $14 which will grow at 2.5% per year after that.

If the company's WACC is 11.1% and the cost of the investment is $57, what is the NPV of the investment?

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