A company is in the process of constructing a new plant at a cost of $15 million. It expects the project to generate cash flows of $9 million, $6 million, and $9 million over the next three years. The cost of capital is 13.2 percent p.a. What is the net present value of this project? (in millions to three decimals)
Select one:
a. $3.837
b. $33.837
c. $1.641
d. $4.455
Ans is a.$ 3.837
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