Use the information for the question(s) below.
Larry the Cucumber has been offered $14 million to star in the lead role of the next three Larry Boy adventure movies. If Larry takes this offer, he will have to forgo acting in other Veggie movies that would pay him $5 million at the end of each of the next three years. Assume Larry's personal cost of capital is 10% per year.
-You are considering an investment in an everlasting gobstopper machine.This machine will cost $10 million and will produce cash flows of $1 million at the end of every year forever.The appropriate cost of capital is 8%.Compute the economic value added (EVA)for this project.Calculate the PV of the EVAs for this project.

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The Answer of Use the information for the question(s) below.
Larry the Cucumber has been offered $14 million to star in the lead role of the next three Larry Boy adventure movies. If Larry takes this offer, he will have to forgo acting in other Veggie movies that would pay him $5 million at the end of each of the next three years. Assume Larry's personal cost of capital is 10% per year.
-You are considering an investment in an everlasting gobstopper machine.This machine will cost $10 million and will produce cash flows of $1 million at the end of every year forever.The appropriate cost of capital is 8%.Compute the economic value added (EVA)for this project.Calculate the PV of the EVAs for this project.

Use the Information for the Question(s) Below