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Question
Mead, Inc. may invest $20 million in a new fiber optic project. Due to market conditions, annual production costs and revenues are forecasted at $10 million and $8 million, respectively, starting next year. Revenues are expected to grow at 4.0% and interest rates are 6.0%. What is the change in value if the project is commenced in 5 years instead of today? (Use static analysis.)A) $8.84 million
B) $10.84 million
C) $12.84 million
D) $14.84 million
Answer
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Related questions
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