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A manufacturing company is considering investing $1,000,000 in a new production facility. The project is expected to generate annual cash flows of $300,000 for the
A manufacturing company is considering investing $1,000,000 in a new production facility. The project is expected to generate annual cash flows of $300,000 for the next 10 years. Calculate the project's net present value (NPV) using a discount rate of 8%. Should the company proceed with the investment based on the NPV criterion? Discuss any non-financial factors that should be considered in the decision-making process.
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