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13. INT Ltd manufactures car parts and management is considering an expansion of its existing operational at a cost of $600,000. It expects this expansion
13. INT Ltd manufactures car parts and management is considering an expansion of its existing operational at a cost of $600,000. It expects this expansion to generate additional net cash inflows for the next 10 years as follows: $100,000 per annum in years 1-5 and $130,000 per annum in ears 6-10. The company's analyst has made the flowing estimates The systematic risk of the company's existing assets is 0.75 The risk-free interest rate is 11 percent per annum The expected rate of return on the market portfolio is 15% per annum Assuming that there is no company income tax, should the company undertake the expansion
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