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[ 1 8 points ] : You are looking at an enhancement idea for an existing project that ends at the end of 2 0

[18 points]: You are looking at an "enhancement" idea for an existing project that ends at the end of 2024. The project is aimed at lowering cost of goods, and also the inventory needs. Assume that the capex spends occur at the beginning of each jiear (for instance, the capex projection in 2022 occurs today -time =0). Assume that other operating cash flows are recognized mid-year. You expect to sell your PP&E at the end of 2024 for $32 million, and you expect to recoup NOWC for this existing (and / or new) project two months after the sale of the PP&E. The WACC =13%, and the relevant tax rate =24%. Calculate the Net Present Value (NPV).
\table[[,Actual,Projections],[($millions),2021,2022,2023,2024
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