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  • 24-05-2024
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As a separate project (Project P), you are considering sponsoring a pavilion at the upcoming World’s Fair. The pavilion would cost $800,000, and is expected to result in $5 million in incremental cash inflows during the its year 1 in operation. However it would then take another year, and $5 million of costs, to demolish the site and return it to kits original condition. Thus, Project P’s expected net cash flow looks like this (in millions of dollars):

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