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A firm can invest $5 million in a new food processing plant. The plant has service life of 20 years and expected sales of 6
A firm can invest $5 million in a new food processing plant. The plant has service life of 20 years and expected sales of 6 million food cans per year. Fixed costs are $2 million a year and variable costs are $1 per can. The product will be priced at $2 per can. A corporate tax rate is 40% and MARR is 10%. What is the project Net Present worth under the base case? $20.4 million $15.4 million $46.1 million $25.6 million $29.0 million
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