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2. Gillette's competitor, Slick, invests $800 million to develop the Mock4 Razor blade. The specialized blade factory will run for 7 years, until it
2. Gillette's competitor, Slick, invests $800 million to develop the Mock4 Razor blade. The specialized blade factory will run for 7 years, until it is replace by more advanced technology. At that point, the machinery will be sold for scrap metal, for a price of $50 million. Taxes of $10 million will be assessed on sale. Calculate the cash flow from investments.
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