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Waterfront Manufacturing Company is purchasing a production facility at a cost of $21,000,000. The firm expects the project to generate annual free cash flows of $7,000,000 over the next five years. They also expect to sell the facility at the end of five years for an after-tax salvage value of $5,000,000. Its cost of capital is 20 percent. What is the net present value (NPV) of this project?

Financial Management, Finance

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