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6. The Jacob Chemical Company is considering building a new potassium sulfate plant. The following cash outlays are required to complete the plant: Year Cash

6. The Jacob Chemical Company is considering building a new potassium sulfate plant. The following cash outlays are required to complete the plant:

Year Cash Outlay

0 $4,050,000

1 2,050,000

2 550,000

Jacobs cost of capital is 13%, and its marginal tax rate is 40%. Calculate the plants net investment (NINV).

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