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5. You are considering a massive expansion of your manufacturing facility in Newpisqipo. Two proposals are being considered. The first facility, code named.Quick and Dirty,

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5. You are considering a massive expansion of your manufacturing facility in Newpisqipo. Two proposals are being considered. The first facility, code named.Quick and Dirty, will cost $200,000 immediately and will produce $35,000 per year in cash flows for the next ten years. The second alternative, code named Slow but Sure, will require an outlay of $400,000 and will produce cash flows of $75,000 per year for the hext ten years. The required rate of return on both of these projects is 12 percent a. Calculate the net present value and internal rate of return for both projects. b. If you can underfake only one of these two projects, which will you choose? c. If you learn that your firm is only able to invest $400,000 in funds for the next year, will this Slow but Su influence your decision? If so, what else would you wish to know before proceeding with a decision

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