(Quantitative) A project requires a $15m investment today; next year it will generate a cashflow of $1m, which will then grow at an annual rate of 1% forever. What is the IRR of this project? ANSWER Type your answer here...

Answers

Answer 1

To calculate the Internal Rate of Return (IRR) of the project, we need to find the discount rate that makes the present value of all future cash flows equal to the initial investment. In this case, the initial investment is $15 million, and the project generates a cash flow of $1 million starting from the next year, growing at an annual rate of 1% indefinitely.

To solve for the IRR, we can set up the following equation:

$15,000,000 = $1,000,000 / (1 + IRR) + $1,000,000 / (1 + IRR)^2 + $1,000,000 / (1 + IRR)^3 + ...

We can simplify this equation by using the formula for the present value of a growing perpetuity:

PV = CF / (r - g)

Where PV is the present value, CF is the cash flow, r is the discount rate, and g is the growth rate.

Applying this formula to our problem, we have:

$15,000,000 = $1,000,000 / (IRR - 0.01)

Now, we can solve this equation to find the IRR:

$15,000,000 * (IRR - 0.01) = $1,000,000

IRR - 0.01 = $1,000,000 / $15,000,000

IRR - 0.01 = 0.06667

IRR = 0.06667 + 0.01

IRR = 0.07667

Therefore, the Internal Rate of Return (IRR) of this project is approximately 7.67%.

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Related Questions

Two benefits of self employment

Answers

Self-employment provides strong earning potential as people have more control over their own progression. Going hand-in-hand with the flexible lifestyle, individuals who work for themselves can go over and above to work long hours on some days, network, and reap the benefits of their hard work.

ace hardware has many independently-owned stores across the united states. these stores all share in the savings that result from the company buying supplies in large quantities and providing advertising for the stores. which form of ownership does this represent?

Answers

Ace hardware has many independently-owned stores across the United States. Cooperative form of ownership does this represent.

What is ownership?

The term ownership refers to the legal right to use,  give away a thing, and the owner of the property. The ownership is legal right to the particular thing. It was the consider as the personal property.

According to the case, this was the cooperative ownership represent. It was the business and the organization are the common goal such as economic and the development of the society.

As a result, the significance of the ownership are the aforementioned.

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What is the price at which equilibrium is achieved? $8 $9 $10 $30.

Answers

The equilibrium of the demand and supply can be achieved at a price of $9.

What is the equilibrium position?

The equilibrium is the position in the market where the demand curve and the supply curve intersects with each other at a particular point of price. At the point of equilibrium the quantity supplied and the quantity demanded are the same.

As per the graph, the demand curve shows the quantity demanded in the market at various prices in dollars while the supply curve shows the prices at which each quantity is supplied in the market.

Therefore, after examining the graph the point of intersection is at the point having the Dollar price of 9.

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A store advertises new TVs for $100 a month for six $600 in order to
A. encourage customers to buy more than one item
B. make a larger price tag look more manageable
C. make signage more attractive to shoppers
D. significantly reduce the amount of tax taken

Answers

Answer:

B. make a larger price tag look more manageable

Explanation:

A price tag of $600 may see a too high price for many customers. To eliminate the perception of a huge price/expensive TV, the store opts to spread the TV cost over six months. The customer will end up paying $600 for the TV( 6 x $100).

The $600 price tag may discourage some customers, which translates to a loss of sales. $100 for six months is attractive, pocket friendly and may generate many sales to the store.

A marketer is keeping track of the revenue generated by his campaign. He wants to
see a specified return-on-investment for his monthly ad spend.
Which type of automated bidding strategy will meet his needs?
An awareness-based bidding strategy
A conversion-focused bidding strategy
A revenue-focused bidding strategy
A consideration-focused bidding strategy

Answers

Answer:

C). A revenue-focused bidding strategy.

Explanation:

As per the details given in the question, 'a revenue-focused bidding strategy' will most likely assist the marketer in upkeeping his needs as his key focus is to discern a particular return on his investment that he made for the monthly ad spend made by him. This automated strategy of bidding will allow him to keep track of the revenue and escalate the return. Thus, option C is the correct answer.

according to the theory of comparative advantage, ________ raise(s) productivity by lowering opportunity costs.

Answers

According to the theory of comparative advantage, specialization raises productivity by lowering opportunity costs.

The theory of comparative advantage argues that countries should specialize in producing goods or services in which they have a lower opportunity cost compared to other nations. Opportunity cost refers to the value of the next best alternative that is given up when choosing a particular course of action. When countries specialize in the production of goods or services in which they have a comparative advantage, they can allocate their resources more efficiently, leading to increased productivity.

By focusing on the production of goods or services that they can produce at a lower opportunity cost, countries can achieve higher levels of output with the same amount of resources. Specialization allows countries to capitalize on their strengths and take advantage of their unique resources, skills, or technologies. This leads to a more efficient allocation of resources, as countries can produce more of what they are relatively better at, while importing goods or services that they have a higher opportunity cost in producing.

The theory of comparative advantage suggests that specialization and focusing on areas of comparative advantage can raise productivity by lowering opportunity costs. By allocating resources efficiently and producing goods or services with lower opportunity costs, countries can achieve higher levels of productivity and enjoy the benefits of international trade and specialization.

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according to this information, what will sivar's ebit be if sales actually turn out to be $720,000 rather than $800,000
what will be EPS be?

Answers

Without knowing Sivar's specific financials, it's impossible to determine exactly what their EBIT and EPS would be with a change in sales. However, we can make some general assumptions based on the relationship between these terms.

EBIT (earnings before interest and taxes) is a measure of a company's profitability that takes into account revenue and expenses, but does not include interest payments or taxes. EPS (earnings per share) is a measure of a company's profitability that takes into account net income (which includes interest and taxes) and divides it by the number of outstanding shares.

Assuming that Sivar's expenses remain constant, we can estimate that their EBIT would be lower if sales were $720,000 instead of $800,000, since they would be generating less revenue. Similarly, their EPS would also be lower, since their net income (which includes interest and taxes) would also be lower.

However, it's important to note that these estimates are based on simplified assumptions and may not reflect the specific financials of Sivar or any other company. It's always best to consult a financial advisor or accountant for personalized advice.

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How important is money

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Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

mikela wants to research and study the requirements for the california real estate examination test. where can she find the exam's purpose and requirements?

Answers

Nikela can find the exam's purpose and requirements in California Business and Professions Code Section 10153.

An applicant under the section 10153 shall submit evidence or certification satisfactory to the commissioner of enrollment in, or successful completion at, an accredited institution of a three-semester unit course, or the quarter equivalent thereof, in real estate principles, or of successful completion of an equivalent course of study as defined in Section 10153, in order to sit for the examination for a real estate salesperson licence. Thus, Nikela would be required to submit the evidence for her real estate membership report and can find the exam's purpose and requirements.

A sizable amount of the laws applied in California are contained in the California Business and Professions Code. The BPC specialises on laws that control how various professions conduct their daily operations. Without a solid legal foundation, it might be challenging to comprehend the Business and Professions Code.

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The Age Discrimination in Employment Act of 1967 prohibits discrimination against employees aged _______ and older. Group of answer choices a. 21 b. 39 c. 40 d. 41 e. 65

Answers

The Age Discrimination in Employment Act of 1967 prohibits discrimination against employees aged

C. 40

What is Age Discrimination in Employment Act of 1967?

This refers to the government policy where there is the protection for people aged 40 and older from being discriminated and prevented employment.

With this in mind, we can see that this Act was enacted in 1967 in order to encourage the employment of older people who were previously rejected in favor for more younger people.

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Based on the question above, the correct answer goes thus:

c. 40

The ADEA prohibits employment discrimination against persons 40 years of age or older.

In conclusion, we can conclude that the correct answer is 40

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Arrange the following revenues in the federal government, from greatest to
least.
Drag each item to put them in the correct order.
(2 points)
= excise taxes
= Social Security and Medicare taxes
= corporate income taxes
= individual income taxes
= customs duties
= miscellaneous revenue

Answers

Individual income taxes
Social Security and Medicare taxes
Corporate income taxes
Excise taxes
Custom duties
miscellaneous revenue

Transactions and events that affect net income such as the production and purchase of inventory, the sale of goods and services to customers, and the expenditures to run a business are classified as:

Answers

The classification of transactions that affect net income and the expenditures to run a business are classified as operating activities.

What is Inventory?

This refers to the record-keeping of the number of goods available in a warehouse for easy financial accounting.

Hence, we can see that based on the classification of net income based on events that affect net income and the expenditures to run a business are classified as operating activities.

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If an american-based firm opens and operates a new clothing factory in honduras, then it is engaging in:.

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If an american-based firm opens and operates a new clothing factory in honduras, then it is engaging

Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid semiannually. The bond is currently selling for $908.72 per $1000 bond. What is the cost of debt?Your company has preferred stock that has an annual dividend of $3. If the current price is $25, what is the cost of preferred stock?

Answers

To calculate the cost of debt, we need to determine the yield to maturity (YTM) of the bond. The cost of debt is equivalent to the YTM.

Given:

Coupon rate = 9%

Face value = $1000

Selling price = $908.72

Time to maturity = 25 years

Coupon payments are made semiannually

First, we calculate the semiannual coupon payment by dividing the coupon rate by 2 and multiplying it by the face value:

Coupon payment = (9% / 2) * $1000 = $45

Next, we calculate the number of semiannual periods remaining until maturity:

Number of periods = 25 years * 2 = 50 semiannual periods

Using the present value formula for an ordinary annuity, we can calculate the yield to maturity (YTM):

\($908.72\) =\(($45 / (1 + r/2)) + ($45 / (1 + r/2)^2) + ... + ($45 / (1 + r/2)^50)\)

Solving this equation for "r" (the semiannual yield to maturity) will give us the cost of debt.

To calculate the cost of preferred stock, we divide the annual dividend by the current price:

Cost of preferred stock = Dividend / Price

Cost of preferred stock = \(3 / $25\)

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property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is

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Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is referred to as "mislaid property."

This occurs when an individual unintentionally leaves their belongings in a location and later forgets to retrieve them. Mislaid property is distinguishable from lost property, which is when an item accidentally falls or is unintentionally dropped by the owner, and abandoned property, where the owner intentionally relinquishes all rights to the item.

In the case of mislaid property, the owner typically has the intention to reclaim their belongings but forgets their location due to various reasons such as distraction or forgetfulness. Legally, the owner still retains rights to the mislaid property, and the finder of the item generally has no legal claim to it.

It is important to distinguish between these types of properties, as different laws and obligations apply to each. When mislaid property is found, the finder should notify the owner, if known, or turn the item over to the property owner or a local authority, such as the police.

The finder may be entitled to a reward for their honesty, but the priority is to return the property to the rightful owner. In some jurisdictions, if the owner cannot be found within a specific time frame, the finder may eventually gain legal ownership of the mislaid property.

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The property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is called "lost property." Lost property refers to any personal property that has been unintentionally left behind or misplaced by its owner, and the owner has no intention of relinquishing ownership of the item.

Examples of lost property can include a lost wallet, a misplaced cellphone, or a forgotten piece of jewelry.In legal terms, lost property is distinguished from "mislaid property," which refers to an item that has been intentionally placed somewhere by the owner but then forgotten. For instance, if someone intentionally puts their watch on a restaurant table and forgets to pick it up after leaving, the watch is considered mislaid property rather than lost property. In such a case, the owner of the property has the right to reclaim it from the place where it was mislaid, while lost property typically becomes the property of the finder after a certain period of time has elapsed.

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A seller wants to net $55,614 from the sale of her house after paying a 7ommission. her minimum sales price will have to be?

Answers

Based on the amount that a seller wants after the sale of the house and the commission percentage, the minimum sales price of the house will be $59,800

What is the minimum sales price?

When you have the net amount desired and the commission, the minimum sales price of a property can be found by the formula:

= Desired sales price / (1 - commission amount)

Solving for the minimum sales price gives:

= 55,614 / (1 - 7%)

= 55,614 / 0.93

= $59,800

In conclusion, the minimum sales price should be $59,800.

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What are good sides and bad sides of breaking news and some examples why is it bad/good?​

Answers

Answer:

breaking news may have a bad news example of bad news is fake news

Answer:

In my opinion, I see that the good side of news is that it help people be more aware of what's going around, and some may contribute to the rise in support for some fundings and charity programs for example: if a breaking news about a victim of any crime for example stolen house is displayed, an interview can give a voice to the victim to speak out and maybe raise fundings to repair all stolen goods or damaged items. On the other hand, some breaking news can end up sending out the wrong message and information for example talking about untrustable information, which may later on turn out to be wrong this can cause rumors.

10. Publishing representatives who call on college professors to inform them of their company's new publications have a great deal of freedom in their jobs. They have only a general sales pitch, which they tailor as needed. Based on this information, we can say that the job of these publishing representatives ________.

Answers

Answer:

Scores low on degree of formalization

Explanation:

Degree of formalization of a process is the level to which the process is free of the personal input of the individual executing the process.

It implies that in high degree of formalization process execution is set and the same steps are followed by all participants.

In the given instance Publishing representatives have a great deal of freedom in their jobs.

They tailor their sales pitch as they see fit.

This shows a low degree of formalization in the sales process

This is really for Economics but...

How are wages affected by the market?

Answers

Answer:

They could help give stock to the store/s that's using them. Or, they are the ones getting money for the produce or business, but it helps them get more and more resources for their store.

Explanation:

Answer:

Economists argued that wages are determined by demand and supply.They called it the theory of wage determination They said The price of labor is determined in the free market like every other price by intersection,Supply and demand.

Explanation: that took me a moment to think that out for it to be understandable so it doesn't disorient you

the wheel of retailing describes how stores start out as innovative low-margin, low-priced operations and seek to broaden their customer base by

Answers

Wheel of Retailing is concept that explains evolution of retail businesses. It suggests that stores often begin as innovative, low-margin, low-priced operations to attract customers. As these businesses gain foothold in market, widen their customer base by offering wider range products.



Over time, as the store continues to grow, it may implement more sophisticated management and marketing techniques to maintain customer loyalty and enhance profitability. This often includes investing in improved store design, customer service, and promotional strategies. As a result, the store transitions from being a low-cost, low-margin operation to a higher-margin, full-service establishment.


Eventually, the store may face new competition from other innovative, low-margin, and low-priced retailers entering the market. These new entrants capitalize on the market gaps left by established retailers that have shifted their focus towards higher-priced, full-service offerings. In response, the established retailer may either adapt to the changing market dynamics or continue down the path of a full-service store.



Wheel of Retailing illustrates the life cycle of retail businesses as they evolve from low-margin, low-priced operations to higher-margin, full-service establishments, and face new competition from innovative retailers. This concept highlights the importance of continuous adaptation and innovation to remain competitive in the ever-changing retail landscape.

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Covering up incidents, abusing sick days, lying to a supervisor, taking credit for a colleague's ideas, and inflating grades on a résumé are examples of

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Covering up accidents, taking advantage of sick days, telling lie to the boss, appropriating a coworker's ideas, and exaggerating grades on a resume are some examples of unethical actions.

A candidate for a job creates a formal document called a résumé that outlines their qualifications for the position. A resume is typically accompanied with a personalized cover letter in which the applicant expresses interest in a certain job or company and highlights crucial details from the CV.

The term "unethical behavior" refers to conduct that deviates from societal norms or is seen negatively by the general public. The exact opposite of unethical activity is ethical behavior. The public accepts ethical behavior because it adheres to the majority of societal standards.

One of the biggest problems in today's society is the prevalence of unethical behavior, which includes lying, cheating, organizational misbehavior, and many other types. Extreme incidents and expensive frauds are frequent, as the media frequently emphasizes.

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Audioslave Company produces a product that sells for $75 per unit. It has $120,000 of total fixed costs and $45 of variable costs per unit. The number of units to be produced and sold to obtain a $31,000 profit after income taxes of 30% = ______________

Answers

The leftover profit a business has after subtracting income taxes from its gross income is referred to as profit after income taxes, also known as net income or net profit.

To find: Number of units to be produced and sold to obtain a $31,000 profit after income taxes of 30%.The formula used:

Profit = (Sales − Variable cost) − Fixed costs

Income taxes = Profit before taxes × Tax rate

Profit before taxes = Profit after taxes ÷ (1 − Tax rate)

Calculation: Profit after taxes = $31,000

Income taxes = Profit before taxes × Tax rate

Profit before taxes = Profit after taxes ÷ (1 − Tax rate)

= $31,000 ÷ (1 − 0.30)

= $31,000 ÷ 0.70

= $44,285.71

Contribution per unit = Selling price per unit − Variable cost per unit

= $75 − $45

= $30

Profit per unit = Contribution per unit − Fixed cost

= $30 − ($120,000 ÷ X units)

= $31,000 ÷ X units$30 − ($120,000 ÷ X units)

= $31,000 ÷ X units$31,000

= $120,000 ÷ X units + $30X units × ($30 − $31,000 ÷ X units)

= $120,000X ($900 − $31,000)

= $120,000X = $120,000 ÷ $30,100

= 3,990.03 ≈ 3,990 units.

Therefore, the number of units to be produced and sold to obtain a $31,000 profit after income taxes of 30% is 3,990.

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fill in the blank. the economic principle of___says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first.

Answers

The economic principle of substitution says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first.

Substitution refers to the practice of utilizing a less costly alternative if a commodity appears to be overly expensive or beyond the consumer's budget.

The economic principle of substitution refers to the idea that people will substitute goods or services that are more cost-effective or efficient. This economic principle is used in situations where similar commodities can be used in place of one another.

When there are two or more competing goods with similar attributes, the cheaper one is more likely to be purchased.

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1. Looking at Nigeria as a potential emerging market, mention and explain 4 factors you think are preventing Nigeria from becoming an excellent emerging market to invest in? 2. If you were given the chance, resources and power to change Nigeria, which one out of the 4 problems identified above would you try to solve and how would you do it?

Answers

do not understand what you are saying

The ________ helps define the overall structure of the Internet.
A) IAB
B) IESG
C) W3C
D) ITU

Answers

(Option A) IAB. The Internet Architecture Board (IAB) helps define the overall structure of the Internet.

It is a committee of the Internet Engineering Task Force (IETF) and provides guidance and advice on technical and policy issues related to the development and evolution of the Internet. The IAB plays a key role in ensuring the stability and interoperability of the Internet by defining and promoting standards for Internet protocols and architectures. It works closely with other organizations such as the Internet Assigned Numbers Authority (IANA) and the Internet Corporation for Assigned Names and Numbers (ICANN) to ensure that the Internet operates smoothly and efficiently.

The IAB is responsible for developing and maintaining the Internet protocol suite, which includes protocols such as TCP/IP, DNS, and HTTP. It also provides guidance on security and privacy issues related to the Internet, as well as on emerging technologies such as the Internet of Things (IoT) and 5G networks. Overall, the IAB plays a critical role in ensuring that the Internet remains an open, accessible, and reliable platform for communication and innovation.

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If Sheridan Company issues 7500 shares of $10 par value common stock for $375000, the account Paid-in Capital in Excess of Par Value will be credited for $75000. Common Stock will be credited for $75000. Cash will be debited for $300000. Paid-in Capital in Excess of Par Value will be credited for $375000.

Answers

Answer:

Common Stock will be credited for $75000

Explanation:

The journal entry to record the issuance of the common stock is shown below:

Cash Dr  $375,000

    To Common stock (7,500 shares × $10) $75,000

    To Additional paid in excess of par value - common stock $300,000

(Being the issuance of the common stock is recorded)

For recording this we debited the cash as it increased the assets and credited the common stock and additional capital as it increased the equity  

$200 a month for car insurance geico is that normal?

Answers

No that’s is not normal very overpriced
No it is not it’s too overpriced

What is a credit limit and what is it's purpose?

Answers

Answer:

What is a credit limit?

A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit.

what is the purpose of a credit limit?

Credit limits determine how much you can spend using your credit cards and serve as a way for lenders to limit the risk of lending money. Having high credit limits can be a good thing, because it gives you the flexibility to spend money when you need to and it may help you maintain good credit scores.

Explanation:

What is the GDP growth rate?
What is GDP per capita growth rate?
What is the productivity growth rate?

Help ASAP. The assignment's due tonight

What is the GDP growth rate?What is GDP per capita growth rate?What is the productivity growth rate?Help

Answers

The GDP growth rate, also known as economic growth rate, is measure of the change in country's gross domestic product (GDP) over a specific period of time, usually year or quarter.

What is economic growth?

Economic growth refers to the increase in the production and consumption of goods and services in an economy over a specific period. This growth can be measured by changes in gross domestic product (GDP), which is the total value of all goods and services produced within a country's borders. Economic growth is generally seen as a positive development, as it creates jobs, increases income and improves living standards for people. However, it can also have negative consequences such as environmental degradation, inequality and inflation. Governments and central banks often try to promote economic growth through various policies, such as fiscal stimulus, monetary policy and investments in infrastructure and education.

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why do most measurement control situations include a r-chart along with the x-bar chart? group of answer choices it is important to measure and understand variability within a sample along with the sample averages. the r-chart is another way of measuring x-bar, so this turns out to be an extra check on the control of the sample averages. the r-chart is easier to calculate, so it is a way to be sure the worker doesn't make a mistake. the ups and downs of the x-bar chart should exactly match the ups and downs of the r-chart; if not, the process is out of control. none of the above is a correct answer.

Answers

Most measurement control situations include an r-chart along with the x-bar chart because it is necessary to measure and understand variability within a sample along with the sample averages.

To track process variables, an R-Chart is generally used in conjunction with an X-Bar Chart. Control limits may be excessively broad if the variable isn't under control, making it difficult to identify the reasons for variation that are affecting the process mean. Every dot in the graph serves as the subgroup mean value.

The X-bar and R-chart pair are frequently used by manufacturers to display continuous data. The X-bar aids in tracking the process' average or mean and how it altered over time. The sample range, or the difference between the highest and lowest value in each sample, is shown by the R-chart.

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