This machine will cost 10 million and will produce cash


You are considering an investment in an everlasting gobstopper machine. This machine will cost $10 million and will produce cash flows of $1 million and the end of every year forever. The appropriate cost of capital is 8%. Compute the economic value added (EVA) for this project. The PV of the EVAs for this project is.

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Finance Basics: This machine will cost 10 million and will produce cash
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