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ABC Corp is evaluating whether to build a new production facility for its robotics components. The facility will cost $30 million upfront to build and
ABC Corp is evaluating whether to build a new production facility for its robotics components. The facility will cost
$30
million upfront to build and generate free cash flows of
$9
million,
$13.7
million, and
$12
million in year 1,2, and 3, respectively. The facility will become obsolete after year 3 and has no salvage value. What is the NPV of constructing the facility (in $millions) if it has a cost of capital of 11 percent?\ a. -2.00\ cross out .\ b. -3.00 cross out\ c. -4.00 cross out\ . -1.00\ cross out\ e. 0.00\ cross out
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