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1) Identify the items to be included in the capital budgeting analysis. 2) Ascribe values to the items identified part 1. These values should capture
1) Identify the items to be included in the capital budgeting analysis.
2) Ascribe values to the items identified part 1. These values should capture the effects of inflation on the variable cost per unit and the prices of product. Assume that the project will end in five years and the exchange rate is expected to depreciate 3 % each year for the next 3 years, appreciate by 2% in year 4 and 4% in year in year 5.
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