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Business, 04.03.2020 22:55 querline87

You own an oil pipeline that will generate a $2 million cash return over the coming year. The pipeline’s operating costs are negligible, and it is expected to last for a very long time. Unfortunately, the volume of oil shipped is declining, and cash flows are expected to decline by 4% per year. The discount rate is 10%.

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You own an oil pipeline that will generate a $2 million cash return over the coming year. The pipeli...

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