Business, 22.09.2020 20:01 AshantiLiz990

Your family owns an oil refinery in North Dakota that generates $45 million in revenues per year. The operating cost of the refinery at the end of this year will be $20 million. However, because of the age and required maintenance of the refinery, you expect the operating costs to grow at 7% per year. Assume that all revenue and operating costs occur at the end of the year. The discount rate is 12% per year. What is the present value of the refinery's cash flows under the assumption that you will operate it forever

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Your family owns an oil refinery in North Dakota that generates $45 million in revenues per year. Th...

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