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Question
Project Zeta is expected to produce after-tax cash flows $30 million in year 1, $40 million in year 2, and $50 million in year 3. If the company uses a 12% required rate of return, what is the most it can invest in this project and break even with respect to NPV?A) $69.03 million
B) $94.26 million
C) $1,11 million
D) $120 million
Answer
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