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7--Bita overseas company is working on expansion decision, assume that the company is having 3 different alternates of investment, to invest in plant A, the

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7--Bita overseas company is working on expansion decision, assume that the company is having 3 different alternates of investment, to invest in plant A, the cost of initial investment (outflow) is $100000 and the expected returns (inflow ) $ 40000 per year for 4 years that are shown in the table below, OR to invest in plant B, the cost of initial investment (outflow) is $200000 and the expected returns (inflow ) $ 50000 per year for 4 years, OR to invest in plant C, the cost of initial investment (outflow) is $150000 and the expected returns (inflow ) $ 35000 per year for 4 years that are shown in the table below that are shown in the table below....... (3 marks) REQUIRED Which ALTERNATE would the management choose. Giving the following table: Year Plant A Plant B Plant C Investments 100,000 200,000 150,000 1 40 50 35 2 40 50 35 3 50 35 4 40 50 35 40

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